Cover Page
Cover Page - shares | 6 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-10042 | |
Entity Registrant Name | Atmos Energy Corp | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 75-1743247 | |
Entity Address, Address Line One | 1800 Three Lincoln Centre | |
Entity Address, Address Line Two | 5430 LBJ Freeway | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75240 | |
City Area Code | 972 | |
Local Phone Number | 934-9227 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | ATO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 122,311,513 | |
Entity Central Index Key | 0000731802 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
ASSETS | ||
Property, plant and equipment | $ 15,044,831 | $ 14,180,593 |
Less accumulated depreciation and amortization | 2,496,591 | 2,392,924 |
Net property, plant and equipment | 12,548,240 | 11,787,669 |
Current assets | ||
Cash and cash equivalents | 320,099 | 24,550 |
Accounts receivable, net | 377,817 | 230,571 |
Gas stored underground | 68,061 | 130,138 |
Other current assets | 63,584 | 72,772 |
Total current assets | 829,561 | 458,031 |
Goodwill | 730,706 | 730,706 |
Deferred charges and other assets | 607,891 | 391,213 |
Total assets | 14,716,398 | 13,367,619 |
Shareholders’ equity | ||
Common stock, no par value (stated at $0.005 per share); 200,000,000 shares authorized; issued and outstanding: March 31, 2020 — 122,308,725 shares; September 30, 2019 — 119,338,925 shares | 612 | 597 |
Additional paid-in capital | 3,986,187 | 3,712,194 |
Accumulated other comprehensive loss | (112,641) | (114,583) |
Retained earnings | 2,430,257 | 2,152,015 |
Shareholders’ equity | 6,304,415 | 5,750,223 |
Long-term debt | 4,328,866 | 3,529,452 |
Total capitalization | 10,633,281 | 9,279,675 |
Current liabilities | ||
Accounts payable and accrued liabilities | 190,088 | 265,024 |
Other current liabilities | 543,248 | 479,501 |
Short-term debt | 199,923 | 464,915 |
Current maturities of long-term debt | 131 | 0 |
Total current liabilities | 933,390 | 1,209,440 |
Deferred income taxes | 1,421,779 | 1,300,015 |
Regulatory excess deferred taxes | 694,433 | 705,101 |
Regulatory cost of removal obligation | 448,681 | 473,172 |
Deferred credits and other liabilities | 584,834 | 400,216 |
Total shareholders' equity and liabilities | $ 14,716,398 | $ 13,367,619 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock stated value (USD per share) | $ 0.005 | $ 0.005 |
Common stock authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock issued (in shares) | 122,308,725 | 119,338,925 |
Common stock outstanding (in shares) | 122,308,725 | 119,338,925 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Operating revenues | $ 977,665 | $ 1,094,645 | $ 1,853,228 | $ 1,972,427 |
Purchased gas cost | 317,883 | 471,676 | 614,751 | 813,841 |
Operation and maintenance expense | 147,824 | 149,427 | 300,069 | 288,027 |
Depreciation and amortization expense | 105,916 | 96,772 | 210,978 | 192,837 |
Taxes, other than income | 74,604 | 79,093 | 143,211 | 143,581 |
Operating income | 331,438 | 297,677 | 584,219 | 534,141 |
Other non-operating income (expense) | (2,989) | 4,232 | 1,898 | (3,491) |
Interest charges | 22,171 | 26,949 | 49,400 | 54,798 |
Income before income taxes | 306,278 | 274,960 | 536,717 | 475,852 |
Income tax expense | 66,632 | 60,072 | 118,398 | 103,318 |
Net income | $ 239,646 | $ 214,888 | $ 418,319 | $ 372,534 |
Basic net income per share (USD per share) | $ 1.95 | $ 1.83 | $ 3.43 | $ 3.22 |
Diluted net income per share (USD per share) | 1.95 | 1.82 | 3.42 | 3.21 |
Cash dividends per share (USD per share) | $ 0.575 | $ 0.525 | $ 1.15 | $ 1.05 |
Basic weighted average shares outstanding (in shares) | 122,916 | 117,581 | 122,015 | 115,690 |
Diluted weighted average shares outstanding (in shares) | 122,997 | 117,756 | 122,179 | 115,794 |
Other comprehensive income (loss), net of tax | ||||
Net unrealized holding gains (losses) on available-for-sale securities, net of tax of $(49) and $29 | $ (163) | $ 97 | $ (164) | $ 97 |
Cash flow hedges: | ||||
Amortization and unrealized loss on interest rate agreements, net of tax of $623 and $(7,405) | 1,053 | (2,792) | 2,106 | (25,050) |
Total other comprehensive income (loss) | 890 | (2,695) | 1,942 | (24,953) |
Total comprehensive income | 240,536 | 212,193 | 420,261 | 347,581 |
Distribution segment | ||||
Operating revenues | 932,296 | 1,057,192 | 1,760,136 | 1,895,373 |
Pipeline and storage segment | ||||
Operating revenues | 45,369 | 37,453 | 93,092 | 77,054 |
Operating Segments | Distribution segment | ||||
Operating revenues | 933,005 | 1,057,889 | 1,761,509 | 1,896,724 |
Purchased gas cost | 418,935 | 570,348 | 816,493 | 1,008,080 |
Operation and maintenance expense | 115,851 | 117,621 | 230,203 | 223,388 |
Depreciation and amortization expense | 76,265 | 69,904 | 152,339 | 139,613 |
Taxes, other than income | 68,413 | 71,053 | 128,656 | 127,243 |
Operating income | 253,541 | 228,963 | 433,818 | 398,400 |
Other non-operating income (expense) | (5,191) | 5,263 | (3,237) | (1,214) |
Interest charges | 10,797 | 15,896 | 27,159 | 34,106 |
Income before income taxes | 237,553 | 218,330 | 403,422 | 363,080 |
Income tax expense | 50,489 | 46,137 | 86,601 | 76,502 |
Net income | 187,064 | 172,193 | 316,821 | 286,578 |
Operating Segments | Pipeline and storage segment | ||||
Operating revenues | 146,237 | 135,650 | 294,413 | 270,120 |
Purchased gas cost | 202 | (90) | 301 | (448) |
Operation and maintenance expense | 32,296 | 32,118 | 70,517 | 65,265 |
Depreciation and amortization expense | 29,651 | 26,868 | 58,639 | 53,224 |
Taxes, other than income | 6,191 | 8,040 | 14,555 | 16,338 |
Operating income | 77,897 | 68,714 | 150,401 | 135,741 |
Other non-operating income (expense) | 2,202 | (1,031) | 5,135 | (2,277) |
Interest charges | 11,374 | 11,053 | 22,241 | 20,692 |
Income before income taxes | 68,725 | 56,630 | 133,295 | 112,772 |
Income tax expense | 16,143 | 13,935 | 31,797 | 26,816 |
Net income | 52,582 | 42,695 | 101,498 | 85,956 |
Intersegment eliminations | ||||
Operating revenues | (101,577) | (98,894) | (202,694) | (194,417) |
Purchased gas cost | (101,254) | (98,582) | (202,043) | (193,791) |
Operation and maintenance expense | (323) | (312) | (651) | (626) |
Depreciation and amortization expense | 0 | 0 | 0 | 0 |
Taxes, other than income | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Other non-operating income (expense) | 0 | 0 | 0 | 0 |
Interest charges | 0 | 0 | 0 | 0 |
Income before income taxes | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Net income | 0 | 0 | 0 | 0 |
Intersegment eliminations | Distribution segment | ||||
Operating revenues | 709 | 697 | 1,373 | 1,351 |
Intersegment eliminations | Pipeline and storage segment | ||||
Operating revenues | 100,868 | 98,197 | 201,321 | 193,066 |
Natural Gas, US Regulated | ||||
Purchased gas cost | 317,883 | 471,676 | 614,751 | 813,841 |
Natural Gas, US Regulated | Operating Segments | Distribution segment | ||||
Purchased gas cost | 418,935 | 570,348 | 816,493 | 1,008,080 |
Natural Gas, US Regulated | Operating Segments | Pipeline and storage segment | ||||
Purchased gas cost | 202 | (90) | 301 | (448) |
Natural Gas, US Regulated | Intersegment eliminations | ||||
Purchased gas cost | $ (101,254) | $ (98,582) | $ (202,043) | $ (193,791) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||||
Net unrealized holding losses on available-for-sale securities, tax | $ (49) | $ 29 | $ (49) | $ 29 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax, Parent | $ 312 | $ (825) | $ 623 | $ (7,405) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows From Operating Activities | ||
Net income | $ 418,319 | $ 372,534 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 210,978 | 192,837 |
Deferred income taxes | 110,664 | 96,885 |
Other | 7,144 | 5,334 |
Net assets / liabilities from risk management activities | 1,310 | (333) |
Net change in operating assets and liabilities | (114,640) | (106,428) |
Net cash provided by operating activities | 633,775 | 560,829 |
Cash Flows From Investing Activities | ||
Capital expenditures | (994,737) | (777,586) |
Proceeds from the sale of discontinued operations | 0 | 4,000 |
Debt and equity securities activities, net | (1,131) | 777 |
Other, net | 4,631 | 4,388 |
Net cash used in investing activities | (991,237) | (768,421) |
Cash Flows From Financing Activities | ||
Net decrease in short-term debt | (264,992) | (575,780) |
Net proceeds from equity offering | 258,047 | 494,085 |
Issuance of common stock through stock purchase and employee retirement plans | 8,321 | 10,344 |
Proceeds from issuance of long-term debt | 799,450 | 1,045,221 |
Settlement of interest rate swaps | 0 | (90,141) |
Repayment of long-term debt | 0 | (450,000) |
Cash dividends paid | (140,077) | (120,328) |
Debt issuance costs | (7,738) | (11,227) |
Net cash provided by financing activities | 653,011 | 302,174 |
Net increase in cash and cash equivalents | 295,549 | 94,582 |
Cash and cash equivalents at beginning of period | 24,550 | 13,771 |
Cash and cash equivalents at end of period | $ 320,099 | $ 108,353 |
Nature of Business
Nature of Business | 6 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business Atmos Energy Corporation (“Atmos Energy” or the “Company”) and its subsidiaries are engaged in the regulated natural gas distribution and pipeline and storage businesses. Our distribution business is subject to federal and state regulation and/or regulation by local authorities in each of the states in which our regulated divisions and subsidiaries operate. Our distribution business delivers natural gas through sales and transportation arrangements to over three million residential, commercial, public authority and industrial customers through our six regulated distribution divisions, which at March 31, 2020 , covered service areas located in eight states. Our pipeline and storage business, which is also subject to federal and state regulations, includes the transportation of natural gas to our Texas and Louisiana distribution systems and the management of our underground storage facilities used to support our distribution business in various states. |
Unaudited Financial Information
Unaudited Financial Information | 6 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Unaudited Financial Information | Unaudited Financial Information These consolidated interim-period financial statements have been prepared in accordance with accounting principles generally accepted in the United States on the same basis, aside from accounting policy changes noted below, as those used for the Company’s audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . In the opinion of management, all material adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been made to the unaudited consolidated interim-period financial statements. These consolidated interim-period financial statements are condensed as permitted by the instructions to Form 10-Q and should be read in conjunction with the audited consolidated financial statements of Atmos Energy Corporation included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . Because of seasonal and other factors, the results of operations for the six -month period ended March 31, 2020 are not indicative of our results of operations for the full 2020 fiscal year, which ends September 30, 2020 . Except as noted below related to recent ratemaking activity, in Note 7 to the unaudited condensed consolidated financial statements regarding recent financing activity and in Note 11 to the unaudited condensed consolidated financial statements regarding new cash flow hedges, no events have occurred subsequent to the balance sheet date that would require recognition or disclosure in the unaudited condensed consolidated financial statements. Significant accounting policies Our accounting policies are described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . During the second quarter of fiscal 2020, we completed our annual goodwill impairment assessment using a qualitative assessment, as permitted under U.S. GAAP. We test goodwill for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit. Based on the assessment performed, we determined that our goodwill was not impaired. Accounting pronouncements adopted in fiscal 2020 In February 2016, the Financial Accounting Standards Board (FASB) issued a comprehensive new leasing standard that requires lessees to recognize a lease liability and a right-of-use (ROU) asset for all leases, including operating leases on its balance sheet. The new standard was effective for us beginning on October 1, 2019. See Note 6 to the unaudited condensed consolidated financial statements for further details regarding our adoption of the new lease standard and the related disclosures. Accounting pronouncements that will be effective after fiscal 2020 In March 2020, the FASB issued optional guidance which will ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by the cessation of the London Interbank Offered Rate (LIBOR). The amendments can be elected immediately, as of March 12, 2020, through December 31, 2022. We are currently evaluating if we will apply the optional guidance as we assess the impact of the cessation of LIBOR on our current contracts and hedging relationships and the potential impact on our financial position, results of operations and cash flows. In December 2019, the FASB issued new guidance related to accounting for income taxes which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocations and calculating income taxes in interim periods. The new standard also adds guidance to reduce complexity in certain areas, such as recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The new standard will be effective for us beginning on October 1, 2021; early adoption is permitted. We are currently evaluating the potential impact of this new guidance on our financial position, results of operations and cash flows. In June 2016, the FASB issued new guidance which will require credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model. Under this model, entities will estimate credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument. In contrast, current U.S. GAAP is based on an incurred loss model that delays recognition of credit losses until it is probable the loss has been incurred. The new guidance also introduces a new impairment recognition model for available-for-sale debt securities that will require credit losses to be recorded through an allowance account. The new standard will be effective for us beginning on October 1, 2020. We are currently evaluating the potential impact of this new guidance on our financial position, results of operations and cash flows. Regulatory assets and liabilities Accounting principles generally accepted in the United States require cost-based, rate-regulated entities that meet certain criteria to reflect the authorized recovery of costs due to regulatory decisions in their financial statements. As a result, certain costs are permitted to be capitalized rather than expensed because they can be recovered through rates. We record certain costs as regulatory assets when future recovery through customer rates is considered probable. Regulatory liabilities are recorded when it is probable that revenues will be reduced for amounts that will be credited to customers through the ratemaking process. Substantially all of our regulatory assets are recorded as a component of deferred charges and other assets and our regulatory liabilities are recorded as a component of other current liabilities and deferred credits and other liabilities. Deferred gas costs are recorded either in other current assets or liabilities and our regulatory excess deferred taxes and regulatory cost of removal obligation are reported separately. Significant regulatory assets and liabilities as of March 31, 2020 and September 30, 2019 included the following: March 31, September 30, (In thousands) Regulatory assets: Pension and postretirement benefit costs $ 80,955 $ 86,089 Infrastructure mechanisms (1) 142,075 131,894 Deferred gas costs — 23,766 Recoverable loss on reacquired debt 5,652 6,551 Deferred pipeline record collection costs 27,811 26,418 Rate case costs 2,250 1,346 Other 7,765 8,483 $ 266,508 $ 284,547 Regulatory liabilities: Regulatory excess deferred taxes (2) $ 715,807 $ 726,307 Regulatory cost of service reserve 3,770 5,238 Regulatory cost of removal obligation 521,319 528,893 Deferred gas costs 115,112 14,112 Asset retirement obligation 17,054 17,054 APT annual adjustment mechanism 68,048 78,402 Other 17,591 16,120 $ 1,458,701 $ 1,386,126 (1) Infrastructure mechanisms in Texas and Louisiana allow for the deferral of all eligible expenses associated with capital expenditures incurred pursuant to these rules, including the recording of interest on deferred expenses until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recoverable through base rates. (2) The Tax Cuts and Jobs Act of 2017 (the "TCJA") resulted in the remeasurement of the net deferred tax liability included in our rate base. Of this amount, $21.4 million as of March 31, 2020 and $21.2 million as of September 30, 2019 is recorded in other current liabilities. These liabilities are being returned to customers in most of our jurisdictions on a provisional basis over 15 to 46 years until formal orders establish the final refund periods. Subsequent to March 31, 2020, we have received regulatory orders in Louisiana, Mississippi, Texas (including APT) and Virginia to defer into a regulatory asset all expenses, beyond the normal course of business, related to Coronavirus Disease 2019 (COVID-19 or virus), including bad debt expense. |
Segment Information
Segment Information | 6 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We manage and review our consolidated operations through the following reportable segments: • The distribution segment is primarily comprised of our regulated natural gas distribution and related sales operations in eight states. • The pipeline and storage segment is comprised primarily of the pipeline and storage operations of our Atmos Pipeline-Texas division and our natural gas transmission operations in Louisiana. The accounting policies of the segments are the same as those described in the summary of significant accounting policies found in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . Income statements and capital expenditures for the three and six months ended March 31, 2020 and 2019 by segment are presented in the following tables: Three Months Ended March 31, 2020 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Operating revenues from external parties $ 932,296 $ 45,369 $ — $ 977,665 Intersegment revenues 709 100,868 (101,577 ) — Total operating revenues 933,005 146,237 (101,577 ) 977,665 Purchased gas cost 418,935 202 (101,254 ) 317,883 Operation and maintenance expense 115,851 32,296 (323 ) 147,824 Depreciation and amortization expense 76,265 29,651 — 105,916 Taxes, other than income 68,413 6,191 — 74,604 Operating income 253,541 77,897 — 331,438 Other non-operating income (expense) (5,191 ) 2,202 — (2,989 ) Interest charges 10,797 11,374 — 22,171 Income before income taxes 237,553 68,725 — 306,278 Income tax expense 50,489 16,143 — 66,632 Net income $ 187,064 $ 52,582 $ — $ 239,646 Capital expenditures $ 373,313 $ 92,238 $ — $ 465,551 Three Months Ended March 31, 2019 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Operating revenues from external parties $ 1,057,192 $ 37,453 $ — $ 1,094,645 Intersegment revenues 697 98,197 (98,894 ) — Total operating revenues 1,057,889 135,650 (98,894 ) 1,094,645 Purchased gas cost 570,348 (90 ) (98,582 ) 471,676 Operation and maintenance expense 117,621 32,118 (312 ) 149,427 Depreciation and amortization expense 69,904 26,868 — 96,772 Taxes, other than income 71,053 8,040 — 79,093 Operating income 228,963 68,714 — 297,677 Other non-operating income (expense) 5,263 (1,031 ) — 4,232 Interest charges 15,896 11,053 — 26,949 Income before income taxes 218,330 56,630 — 274,960 Income tax expense 46,137 13,935 — 60,072 Net income $ 172,193 $ 42,695 $ — $ 214,888 Capital expenditures $ 293,270 $ 67,912 $ — $ 361,182 Six Months Ended March 31, 2020 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Operating revenues from external parties $ 1,760,136 $ 93,092 $ — $ 1,853,228 Intersegment revenues 1,373 201,321 (202,694 ) — Total operating revenues 1,761,509 294,413 (202,694 ) 1,853,228 Purchased gas cost 816,493 301 (202,043 ) 614,751 Operation and maintenance expense 230,203 70,517 (651 ) 300,069 Depreciation and amortization expense 152,339 58,639 — 210,978 Taxes, other than income 128,656 14,555 — 143,211 Operating income 433,818 150,401 — 584,219 Other non-operating income (expense) (3,237 ) 5,135 — 1,898 Interest charges 27,159 22,241 — 49,400 Income before income taxes 403,422 133,295 — 536,717 Income tax expense 86,601 31,797 — 118,398 Net income $ 316,821 $ 101,498 $ — $ 418,319 Capital expenditures $ 777,560 $ 217,177 $ — $ 994,737 Six Months Ended March 31, 2019 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Operating revenues from external parties $ 1,895,373 $ 77,054 $ — $ 1,972,427 Intersegment revenues 1,351 193,066 (194,417 ) — Total operating revenues 1,896,724 270,120 (194,417 ) 1,972,427 Purchased gas cost 1,008,080 (448 ) (193,791 ) 813,841 Operation and maintenance expense 223,388 65,265 (626 ) 288,027 Depreciation and amortization expense 139,613 53,224 — 192,837 Taxes, other than income 127,243 16,338 — 143,581 Operating income 398,400 135,741 — 534,141 Other non-operating expense (1,214 ) (2,277 ) — (3,491 ) Interest charges 34,106 20,692 — 54,798 Income before income taxes 363,080 112,772 — 475,852 Income tax expense 76,502 26,816 — 103,318 Net income $ 286,578 $ 85,956 $ — $ 372,534 Capital expenditures $ 595,815 $ 181,771 $ — $ 777,586 Balance sheet information at March 31, 2020 and September 30, 2019 by segment is presented in the following tables: March 31, 2020 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Property, plant and equipment, net $ 9,364,424 $ 3,183,816 $ — $ 12,548,240 Total assets $ 13,946,651 $ 3,403,106 $ (2,633,359 ) $ 14,716,398 September 30, 2019 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Property, plant and equipment, net $ 8,737,590 $ 3,050,079 $ — $ 11,787,669 Total assets $ 12,579,741 $ 3,279,323 $ (2,491,445 ) $ 13,367,619 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share We use the two-class method of computing earnings per share because we have participating securities in the form of non-vested restricted stock units with a nonforfeitable right to dividend equivalents, for which vesting is predicated solely on the passage of time. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator. Basic weighted average shares outstanding is calculated based upon the weighted average number of common shares outstanding during the periods presented. Also, this calculation includes fully vested stock awards that have not yet been issued as common stock. Additionally, the weighted average shares outstanding for diluted EPS includes the incremental effects of the forward sale agreements, discussed in Note 8 to the unaudited condensed consolidated financial statements, when the impact is dilutive. Basic and diluted earnings per share for the three and six months ended March 31, 2020 and 2019 are calculated as follows: Three Months Ended March 31 Six Months Ended March 31 2020 2019 2020 2019 (In thousands, except per share amounts) Basic Earnings Per Share Net income $ 239,646 $ 214,888 $ 418,319 $ 372,534 Less: Income allocated to participating securities 178 170 314 301 Income available to common shareholders $ 239,468 $ 214,718 $ 418,005 $ 372,233 Basic weighted average shares outstanding 122,916 117,581 122,015 115,690 Net income per share — Basic $ 1.95 $ 1.83 $ 3.43 $ 3.22 Diluted Earnings Per Share Income available to common shareholders $ 239,468 $ 214,718 $ 418,005 $ 372,233 Effect of dilutive shares — — — — Income available to common shareholders $ 239,468 $ 214,718 $ 418,005 $ 372,233 Basic weighted average shares outstanding 122,916 117,581 122,015 115,690 Dilutive shares 81 175 164 104 Diluted weighted average shares outstanding 122,997 117,756 122,179 115,794 Net income per share - Diluted $ 1.95 $ 1.82 $ 3.42 $ 3.21 |
Revenue
Revenue | 6 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Our revenue recognition policy is fully described in Note 2 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . The following tables disaggregate our revenue from contracts with customers by customer type and segment and provide a reconciliation to total operating revenues, including intersegment revenues, for the three and six months ended March 31, 2020 and 2019 . Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Distribution Pipeline and Storage Distribution Pipeline and Storage (In thousands) Gas sales revenues: Residential $ 596,315 $ — $ 695,827 $ — Commercial 230,779 — 278,945 — Industrial 25,628 — 35,887 — Public authority and other 14,662 — 17,087 — Total gas sales revenues 867,384 — 1,027,746 — Transportation revenues 28,504 154,748 27,682 142,270 Miscellaneous revenues 6,986 1,335 7,364 2,773 Revenues from contracts with customers 902,874 156,083 1,062,792 145,043 Alternative revenue program revenues (1) 29,638 (9,846 ) (5,397 ) (9,393 ) Other revenues 493 — 494 — Total operating revenues $ 933,005 $ 146,237 $ 1,057,889 $ 135,650 Six Months Ended March 31, 2020 Six Months Ended March 31, 2019 Distribution Pipeline and Storage Distribution Pipeline and Storage (In thousands) Gas sales revenues: Residential $ 1,148,391 $ — $ 1,243,755 $ — Commercial 442,093 — 497,883 — Industrial 50,553 — 70,424 — Public authority and other 27,684 — 30,372 — Total gas sales revenues 1,668,721 — 1,842,434 — Transportation revenues 55,144 306,758 53,082 289,694 Miscellaneous revenues 13,772 6,490 14,314 4,455 Revenues from contracts with customers 1,737,637 313,248 1,909,830 294,149 Alternative revenue program revenues (1) 22,887 (18,835 ) (14,136 ) (24,029 ) Other revenues 985 — 1,030 — Total operating revenues $ 1,761,509 $ 294,413 $ 1,896,724 $ 270,120 (1) In our distribution segment, we have weather-normalization adjustment mechanisms that serve to minimize the effects of weather on our revenue. Additionally, APT has a regulatory mechanism that requires that we share with its tariffed customers 75% of the difference between the total non-tariffed revenues earned during a test period and a revenue benchmark. |
Leases
Leases | 6 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases We adopted the provisions of the new lease accounting standard beginning on October 1, 2019, using the optional transition method, which allows us to apply the provisions of the new standard to all leases that existed as of the date of adoption. Therefore, results for reporting periods beginning on October 1, 2019 are presented under the new lease accounting standard and prior periods are presented under the former lease accounting standard. The new guidance included several practical expedients to facilitate the implementation of the new standard. The following summarizes the practical expedients we used to implement the standard. • We elected to bundle our lease and non-lease components as a single component for all asset classes. • We elected not to perform the following: ◦ Evaluate existing or expired land easements prior to October 1, 2019 to determine if they are leases. ◦ Include short-term leases in the calculation of our lease liability. ◦ Evaluate existing or expired contracts to determine if they are leases. ◦ Assess lease classification for existing or expired leases. ◦ Review initial direct costs for existing leases. ◦ Use hindsight in order to determine the lease term or impairment of our ROU assets. Upon adoption of this new guidance, we recorded ROU assets and lease liabilities of $231.3 million . Additionally, we reclassified a net $6.5 million of accrued and prepaid lease costs to the ROU asset and $2.5 million related to an existing finance lease from deferred credits and other liabilities to long-term debt. Implementation of the new lease accounting guidance had no material impact on our condensed consolidated statements of comprehensive income or our condensed consolidated statements of cash flows. Additionally, we did not record a cumulative-effect adjustment to retained earnings on the opening balance sheet. New Lease Accounting Policy We determine if an arrangement is a lease at the inception of the agreement based on the terms and conditions in the contract. A contract contains a lease if there is an identified asset and we have the right to control the asset. We are the lessee for substantially all of our leasing activity, which primarily includes operating leases for office and warehouse space, tower space, vehicles and heavy equipment used in our operations. We are also a lessee in finance leases for service centers. We record a lease liability and a corresponding ROU asset for all of our leases with a term greater than 12 months. For lease contracts containing renewal and termination options, we include the option period in the lease term when it is reasonably certain the option will be exercised. We most frequently assume renewal options at the inception of the arrangement for our tower and fleet leases, based on our anticipated use of the assets. Real estate leases that contain a renewal option are evaluated on a lease-by-lease basis to determine if the option period should be included in the lease term. Currently, we have not included material renewal options for real estate leases in our ROU asset or lease liability. The following table presents our weighted average remaining lease term for our leases. March 31, 2020 Weighted average remaining lease term (years) Finance leases 19.45 Operating leases 10.72 The lease liability represents the present value of all lease payments over the lease term. The discount rate used to determine the present value of the lease liability is the rate implicit in the lease unless that rate cannot be readily determined. We use the implicit rate stated in the agreement to determine the lease liability for our fleet leases. We use our corporate collateralized incremental borrowing rate as the discount rate for all other lease agreements. This rate is appropriate because we believe it represents the rate we would have incurred to borrow funds to acquire the leased asset over a similar term. We calculated this rate using a combination of inputs, including our current credit rating, quoted market prices of interest rates for our publicly traded unsecured debt, observable market yield curve data for peer companies with a credit rating one notch higher than our current credit rating and the lease term. The following table represents our weighted average discount rate at March 31, 2020: March 31, 2020 Weighted average discount rate Finance leases 6.95 % Operating leases 2.92 % The ROU asset represents the right to use the underlying asset for the lease term, and is equal to the lease liability, adjusted for prepaid or accrued lease payments and any lease incentives that have been paid to us or when we are reasonably certain to incur costs equal to or greater than the allowance defined in the contract. Variable payments included in our leasing arrangements are expensed in the period in which the obligation for these payments is incurred. Variable payments are dependent on usage, output or may vary for other reasons. Most of our variable lease expense is related to tower leases that have escalating payments based on changes to a stated CPI index, and usage of certain office equipment. We have not provided material residual value guarantees for our leases, nor do our leases contain material restrictions or covenants. Lease costs for the three and six months ended March 31, 2020 are presented in the table below. These costs include both amounts recognized in expense and amounts capitalized. For the three and six months ended March 31, 2020 , we did not have material short-term lease costs or variable lease costs. Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 (In thousands) Finance lease cost $ 105 $ 178 Operating lease cost 10,166 20,091 Total lease cost $ 10,271 $ 20,269 Our ROU assets and lease liabilities are presented as follows on the condensed consolidated balance sheets (unaudited): Balance Sheet Classification March 31, 2020 (In thousands) Assets Finance leases Net Property, Plant and Equipment $ 6,631 Operating leases Deferred charges and other assets 222,653 Total right-of-use assets $ 229,284 Liabilities Current Finance leases Current maturities of long-term debt $ 131 Operating leases Other current liabilities 31,482 Noncurrent Finance leases Long-term debt 6,535 Operating leases Deferred credits and other liabilities 199,563 Total lease liabilities $ 237,711 Other pertinent information related to leases was as follows. During the six months ended March 31, 2020 , amounts paid in cash for our finance leases were not material. Six Months Ended March 31, 2020 (In thousands) Cash paid amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 18,223 Right-of-use assets obtained in exchange for lease obligations Finance leases $ 4,150 Operating leases $ 13,854 Maturities of our lease liabilities as of March 31, 2020 , presented on a rolling 12-month basis, were as follows: Total Finance Leases Operating Leases (In thousands) Year 1 $ 36,723 $ 516 $ 36,207 Year 2 37,066 526 36,540 Year 3 32,468 536 31,932 Year 4 27,244 547 26,697 Year 5 17,088 558 16,530 Thereafter 133,876 9,335 124,541 Total lease payments 284,465 12,018 272,447 Less: Imputed interest 46,754 5,352 41,402 Total $ 237,711 $ 6,666 $ 231,045 Reported as of March 31, 2020 Short-term lease liabilities $ 31,613 $ 131 $ 31,482 Long-term lease liabilities 206,098 6,535 199,563 Total lease liabilities $ 237,711 $ 6,666 $ 231,045 Disclosures Related to Prior Periods The future minimum lease payments as of September 30, 2019 were as follows: Operating Leases (1) Capital Lease (In thousands) 2020 $ 21,017 $ 243 2021 20,416 248 2022 19,370 253 2023 18,071 258 2024 15,718 263 Thereafter 105,544 4,343 Total minimum lease payments $ 200,136 5,608 Less amount representing interest 3,018 Present value of net minimum lease payments $ 2,590 (1) Future minimum lease payments do not include amounts for fleet leases and other de minimis items that can be renewed beyond the initial lease term. The Company anticipates renewing the leases beyond the initial term, but the anticipated payments associated with the renewals do not meet the definition of expected minimum lease payments and therefore are not included above. Expected payments are $17.6 million in 2020, $18.0 million in 2021, $11.8 million in 2022, $8.5 million in 2023, $5.4 million 2024 and $2.7 million thereafter. Consolidated lease and rental expense for the three and six months ended March 31, 2019 was $10.3 million and $20.3 million |
Leases | Leases We adopted the provisions of the new lease accounting standard beginning on October 1, 2019, using the optional transition method, which allows us to apply the provisions of the new standard to all leases that existed as of the date of adoption. Therefore, results for reporting periods beginning on October 1, 2019 are presented under the new lease accounting standard and prior periods are presented under the former lease accounting standard. The new guidance included several practical expedients to facilitate the implementation of the new standard. The following summarizes the practical expedients we used to implement the standard. • We elected to bundle our lease and non-lease components as a single component for all asset classes. • We elected not to perform the following: ◦ Evaluate existing or expired land easements prior to October 1, 2019 to determine if they are leases. ◦ Include short-term leases in the calculation of our lease liability. ◦ Evaluate existing or expired contracts to determine if they are leases. ◦ Assess lease classification for existing or expired leases. ◦ Review initial direct costs for existing leases. ◦ Use hindsight in order to determine the lease term or impairment of our ROU assets. Upon adoption of this new guidance, we recorded ROU assets and lease liabilities of $231.3 million . Additionally, we reclassified a net $6.5 million of accrued and prepaid lease costs to the ROU asset and $2.5 million related to an existing finance lease from deferred credits and other liabilities to long-term debt. Implementation of the new lease accounting guidance had no material impact on our condensed consolidated statements of comprehensive income or our condensed consolidated statements of cash flows. Additionally, we did not record a cumulative-effect adjustment to retained earnings on the opening balance sheet. New Lease Accounting Policy We determine if an arrangement is a lease at the inception of the agreement based on the terms and conditions in the contract. A contract contains a lease if there is an identified asset and we have the right to control the asset. We are the lessee for substantially all of our leasing activity, which primarily includes operating leases for office and warehouse space, tower space, vehicles and heavy equipment used in our operations. We are also a lessee in finance leases for service centers. We record a lease liability and a corresponding ROU asset for all of our leases with a term greater than 12 months. For lease contracts containing renewal and termination options, we include the option period in the lease term when it is reasonably certain the option will be exercised. We most frequently assume renewal options at the inception of the arrangement for our tower and fleet leases, based on our anticipated use of the assets. Real estate leases that contain a renewal option are evaluated on a lease-by-lease basis to determine if the option period should be included in the lease term. Currently, we have not included material renewal options for real estate leases in our ROU asset or lease liability. The following table presents our weighted average remaining lease term for our leases. March 31, 2020 Weighted average remaining lease term (years) Finance leases 19.45 Operating leases 10.72 The lease liability represents the present value of all lease payments over the lease term. The discount rate used to determine the present value of the lease liability is the rate implicit in the lease unless that rate cannot be readily determined. We use the implicit rate stated in the agreement to determine the lease liability for our fleet leases. We use our corporate collateralized incremental borrowing rate as the discount rate for all other lease agreements. This rate is appropriate because we believe it represents the rate we would have incurred to borrow funds to acquire the leased asset over a similar term. We calculated this rate using a combination of inputs, including our current credit rating, quoted market prices of interest rates for our publicly traded unsecured debt, observable market yield curve data for peer companies with a credit rating one notch higher than our current credit rating and the lease term. The following table represents our weighted average discount rate at March 31, 2020: March 31, 2020 Weighted average discount rate Finance leases 6.95 % Operating leases 2.92 % The ROU asset represents the right to use the underlying asset for the lease term, and is equal to the lease liability, adjusted for prepaid or accrued lease payments and any lease incentives that have been paid to us or when we are reasonably certain to incur costs equal to or greater than the allowance defined in the contract. Variable payments included in our leasing arrangements are expensed in the period in which the obligation for these payments is incurred. Variable payments are dependent on usage, output or may vary for other reasons. Most of our variable lease expense is related to tower leases that have escalating payments based on changes to a stated CPI index, and usage of certain office equipment. We have not provided material residual value guarantees for our leases, nor do our leases contain material restrictions or covenants. Lease costs for the three and six months ended March 31, 2020 are presented in the table below. These costs include both amounts recognized in expense and amounts capitalized. For the three and six months ended March 31, 2020 , we did not have material short-term lease costs or variable lease costs. Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 (In thousands) Finance lease cost $ 105 $ 178 Operating lease cost 10,166 20,091 Total lease cost $ 10,271 $ 20,269 Our ROU assets and lease liabilities are presented as follows on the condensed consolidated balance sheets (unaudited): Balance Sheet Classification March 31, 2020 (In thousands) Assets Finance leases Net Property, Plant and Equipment $ 6,631 Operating leases Deferred charges and other assets 222,653 Total right-of-use assets $ 229,284 Liabilities Current Finance leases Current maturities of long-term debt $ 131 Operating leases Other current liabilities 31,482 Noncurrent Finance leases Long-term debt 6,535 Operating leases Deferred credits and other liabilities 199,563 Total lease liabilities $ 237,711 Other pertinent information related to leases was as follows. During the six months ended March 31, 2020 , amounts paid in cash for our finance leases were not material. Six Months Ended March 31, 2020 (In thousands) Cash paid amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 18,223 Right-of-use assets obtained in exchange for lease obligations Finance leases $ 4,150 Operating leases $ 13,854 Maturities of our lease liabilities as of March 31, 2020 , presented on a rolling 12-month basis, were as follows: Total Finance Leases Operating Leases (In thousands) Year 1 $ 36,723 $ 516 $ 36,207 Year 2 37,066 526 36,540 Year 3 32,468 536 31,932 Year 4 27,244 547 26,697 Year 5 17,088 558 16,530 Thereafter 133,876 9,335 124,541 Total lease payments 284,465 12,018 272,447 Less: Imputed interest 46,754 5,352 41,402 Total $ 237,711 $ 6,666 $ 231,045 Reported as of March 31, 2020 Short-term lease liabilities $ 31,613 $ 131 $ 31,482 Long-term lease liabilities 206,098 6,535 199,563 Total lease liabilities $ 237,711 $ 6,666 $ 231,045 Disclosures Related to Prior Periods The future minimum lease payments as of September 30, 2019 were as follows: Operating Leases (1) Capital Lease (In thousands) 2020 $ 21,017 $ 243 2021 20,416 248 2022 19,370 253 2023 18,071 258 2024 15,718 263 Thereafter 105,544 4,343 Total minimum lease payments $ 200,136 5,608 Less amount representing interest 3,018 Present value of net minimum lease payments $ 2,590 (1) Future minimum lease payments do not include amounts for fleet leases and other de minimis items that can be renewed beyond the initial lease term. The Company anticipates renewing the leases beyond the initial term, but the anticipated payments associated with the renewals do not meet the definition of expected minimum lease payments and therefore are not included above. Expected payments are $17.6 million in 2020, $18.0 million in 2021, $11.8 million in 2022, $8.5 million in 2023, $5.4 million 2024 and $2.7 million thereafter. Consolidated lease and rental expense for the three and six months ended March 31, 2019 was $10.3 million and $20.3 million |
Debt
Debt | 6 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The nature and terms of our debt instruments and credit facilities are described in detail in Note 6 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . Other than as described below, there were no material changes in the terms of our debt instruments during the six months ended March 31, 2020 . Long-term debt at March 31, 2020 and September 30, 2019 consisted of the following: March 31, 2020 September 30, 2019 (In thousands) Unsecured 3.00% Senior Notes, due 2027 $ 500,000 $ 500,000 Unsecured 2.625% Senior Notes, due 2029 300,000 — Unsecured 5.95% Senior Notes, due 2034 200,000 200,000 Unsecured 5.50% Senior Notes, due 2041 400,000 400,000 Unsecured 4.15% Senior Notes, due 2043 500,000 500,000 Unsecured 4.125% Senior Notes, due 2044 750,000 750,000 Unsecured 4.30% Senior Notes, due 2048 600,000 600,000 Unsecured 4.125% Senior Notes, due 2049 450,000 450,000 Unsecured 3.375% Senior Notes, due 2049 500,000 — Medium-term note Series A, 1995-1, 6.67%, due 2025 10,000 10,000 Unsecured 6.75% Debentures, due 2028 150,000 150,000 Finance lease obligations (see Note 6) 6,666 — Total long-term debt 4,366,666 3,560,000 Less: Original issue (premium) / discount on unsecured senior notes and debentures 663 193 Debt issuance cost 37,006 30,355 Current maturities 131 — $ 4,328,866 $ 3,529,452 On April 9, 2020, we entered into a two year, $200 million term loan agreement. Borrowings under the term loan may be repaid on or after April 9, 2021 and will bear interest at a rate of LIBOR plus 1.25 percent. The term loan was used to pay down all of our outstanding commercial paper. On October 2, 2019, we completed a public offering of $300 million of 2.625% senior notes due 2029 and $500 million of 3.375% senior notes due 2049. We received net proceeds from the offering, after the underwriting discount and offering expenses, of $791.7 million , that were used for general corporate purposes, including the repayment of borrowings pursuant to our commercial paper program. The effective interest rate on these notes is 2.72% and 3.42% , after giving effect to the offering costs. Short-term debt We utilize short-term debt to provide cost-effective, short-term financing until it can be replaced with a balance of long-term debt and equity financing that achieves the Company’s desired capital structure with an equity-to-total-capitalization ratio between 50% and 60% , inclusive of long-term and short-term debt. Our short-term borrowing requirements are driven primarily by construction work in progress and the seasonal nature of the natural gas business. Changes in the price of natural gas and the amount of natural gas we need to supply our customers’ needs could significantly affect our borrowing requirements. Our short-term borrowings typically reach their highest levels in the winter months. As of March 31, 2020, our short-term borrowing requirements were satisfied through a combination of a $1.5 billion commercial paper program and three committed revolving credit facilities with third-party lenders that provide approximately $1.5 billion of total working capital funding. The primary source of our funding is our commercial paper program, which is supported by a five-year unsecured $1.5 billion credit facility that expires on September 25, 2023. The facility bears interest at a base rate or at a LIBOR-based rate for the applicable interest period, plus a margin ranging from zero percent to 1.25 percent , based on the Company’s credit ratings. Additionally, the facility contains a $250 million accordion feature, which provides the opportunity to increase the total committed loan to $1.75 billion . At March 31, 2020 and September 30, 2019 , a total of $199.9 million and $464.9 million was outstanding under our commercial paper program. Additionally, we had a $25 million 364 -day unsecured facility that was available to provide working capital funding. There were no borrowings outstanding under this facility as of March 31, 2020 . This facility was renewed effective April 1, 2020 and was increased to $50 million . Finally, we had a $10 million 364 -day unsecured revolving credit facility, which was used primarily to issue letters of credit. At March 31, 2020 , there were no borrowings outstanding under the facility; however, outstanding letters of credit reduced the total amount available to us under our $10 million facility to $4.4 million . On April 30, 2020, we executed a new $50 million 364 -day unsecured revolving credit facility which replaced this facility. On April 23, 2020, we executed a new $600 million 364 -day unsecured revolving credit facility to provide additional working capital funding. The facility bears interest at a base rate or at a LIBOR-based rate for the applicable interest period, plus a margin ranging from zero percent to 1.25 percent , based on the Company's credit ratings. Following the completion of the new facilities and the amendment to our existing facility in April 2020, our short term borrowing requirements are now satisfied through a combination of a $1.5 billion commercial paper program and four committed revolving credit facilities with third-party lenders that provide approximately $2.2 billion of total working capital funding. Debt covenants The availability of funds under these credit facilities is subject to conditions specified in the respective credit agreements, all of which we currently satisfy. These conditions include our compliance with financial covenants and the continued accuracy of representations and warranties contained in these agreements. We are required by the financial covenants in each of these facilities to maintain, at the end of each fiscal quarter, a ratio of total-debt-to-total-capitalization of no greater than 70 percent . At March 31, 2020 , our total-debt-to-total-capitalization ratio, as defined in the agreements, was 44 percent . In addition, both the interest margin and the fee that we pay on unused amounts under certain of these facilities are subject to adjustment depending upon our credit ratings. These credit facilities and our public indentures contain usual and customary covenants for our business, including covenants substantially limiting liens, substantial asset sales and mergers. Additionally, our public debt indentures relating to our senior notes and debentures, as well as certain of our revolving credit agreements, each contain a default provision that is triggered if outstanding indebtedness arising out of any other credit agreements in amounts ranging from in excess of $15 million to in excess of $100 million becomes due by acceleration or if not paid at maturity. We were in compliance with all of our debt covenants as of March 31, 2020 . If we were unable to comply with our debt covenants, we would likely be required to repay our outstanding balances on demand, provide additional collateral or take other corrective actions. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity The following tables present a reconciliation of changes in stockholders' equity for the three and six months ended March 31, 2020 and 2019 . Common stock Additional Accumulated Retained Total Number of Stated (In thousands, except share and per share data) Balance, September 30, 2019 119,338,925 $ 597 $ 3,712,194 $ (114,583 ) $ 2,152,015 $ 5,750,223 Net income — — — — 178,673 178,673 Other comprehensive income — — — 1,052 — 1,052 Cash dividends ($0.575 per share) — — — — (69,557 ) (69,557 ) Common stock issued: Public and other stock offerings 2,758,929 13 263,259 — — 263,272 Stock-based compensation plans 164,549 1 4,111 — — 4,112 Balance, December 31, 2019 122,262,403 611 3,979,564 (113,531 ) 2,261,131 6,127,775 Net income — — — — 239,646 239,646 Other comprehensive income — — — 890 — 890 Cash dividends ($0.575 per share) — — — — (70,520 ) (70,520 ) Common stock issued: Public and other stock offerings 38,662 1 3,095 — — 3,096 Stock-based compensation plans 7,660 — 3,528 — — 3,528 Balance, March 31, 2020 122,308,725 $ 612 $ 3,986,187 $ (112,641 ) $ 2,430,257 $ 6,304,415 Common stock Additional Accumulated Retained Total Number of Stated (In thousands, except share and per share data) Balance, September 30, 2018 111,273,683 $ 556 $ 2,974,926 $ (83,647 ) $ 1,878,116 $ 4,769,951 Net income — — — — 157,646 157,646 Other comprehensive loss — — — (22,258 ) — (22,258 ) Cash dividends ($0.525 per share) — — — — (58,722 ) (58,722 ) Cumulative effect of accounting change — — — (8,210 ) 8,210 — Common stock issued: Public and other stock offerings 5,434,812 27 498,948 — — 498,975 Stock-based compensation plans 184,464 1 2,602 — — 2,603 Balance, December 31, 2018 116,892,959 584 3,476,476 (114,115 ) 1,985,250 5,348,195 Net income — — — — 214,888 214,888 Other comprehensive loss — — — (2,695 ) — (2,695 ) Cash dividends ($0.525 per share) — — — — (61,606 ) (61,606 ) Common stock issued: Public and other stock offerings 61,006 1 5,453 — — 5,454 Stock-based compensation plans 28,938 — 3,865 — — 3,865 Balance, March 31, 2019 116,982,903 $ 585 $ 3,485,794 $ (116,810 ) $ 2,138,532 $ 5,508,101 Shelf Registration, At-the-Market Equity Sales Program and Equity Issuances On February 11, 2020, we filed a shelf registration statement with the Securities and Exchange Commission (SEC) that allows us to issue up to $4.0 billion in common stock and/or debt securities, which expires February 11, 2023. This shelf registration statement replaced our previous shelf registration statement which was filed on November 13, 2018 (2018 Registration Statement). At March 31, 2020 , approximately $3.0 billion of securities remained available for issuance under the shelf registration statement. On February 12, 2020, we filed a prospectus supplement under the shelf registration statement relating to an at-the-market (ATM) equity sales program (February 2020 ATM) under which we may issue and sell shares of our common stock up to an aggregate offering price of $1.0 billion (including shares of common stock that may be sold pursuant to forward sale agreements entered into concurrently with the ATM equity sales program). This ATM equity sales program replaced our previous ATM equity sales program, filed on November 19, 2018 (November 2018 ATM), which was exhausted during the second quarter with the execution of forward sales. During the six months ended March 31, 2020 , we executed forward sales under the February 2020 ATM and the November 2018 ATM equity sales programs with various forward sellers who borrowed and sold 1,890,857 shares of our common stock at an aggregate price of $219.9 million . Additionally, during the six months ended March 31, 2020 , we settled forward sale agreements with respect to 2,234,871 shares that had been borrowed and sold by various forward sellers during fiscal 2019 under the November 2018 ATM for net proceeds of $213.6 million . As of March 31, 2020 , the February 2020 ATM program had approximately $855 million of equity available for issuance. On November 30, 2018, we filed a prospectus supplement under the 2018 Registration Statement relating to an underwriting agreement to sell 5,390,836 shares of our common stock for $500 million . After expenses, net proceeds from the offering were $494.1 million . Concurrently, we entered into separate forward sales agreements with two forward sellers who borrowed and sold 2,668,464 shares of our common stock at an aggregate price of $247.5 million . During the six months ended March 31, 2020 , we settled the remaining 485,189 shares under these forward sale agreements for net proceeds of $44.4 million . During the six months ended March 31, 2019, we executed forward sales under the November 2018 ATM with various forward sellers who borrowed and sold 1,670,509 shares of our common stock at a weighted average price of $95.46 per share. If we had settled all shares that remain available under our outstanding forward sale agreements as of March 31, 2020 , we would have received proceeds of $418.6 million , based on a net price of $110.13 per share. Additional details are presented below. Issue Quarter Issued Under Shares Available Net Proceeds Available (In thousands) Maturity Forward Price June 30, 2019 ATM 486,201 $ 48,819 9/30/2020 $ 100.41 September 30, 2019 ATM 1,423,599 153,426 9/30/2020 $ 107.77 December 31, 2019 ATM 339,574 36,218 9/30/2020 $ 106.66 March 31, 2020 ATM 1,551,283 180,117 9/30/2020 3/31/2021 $ 116.11 Total 3,800,657 $ 418,580 Accumulated Other Comprehensive Income (Loss) We record deferred gains (losses) in AOCI related to available-for-sale debt securities and interest rate agreement cash flow hedges. Deferred gains (losses) for our available-for-sale debt securities are recognized in earnings upon settlement, while deferred gains (losses) related to our interest rate agreement cash flow hedges are recognized in earnings as they are amortized. The following tables provide the components of our accumulated other comprehensive income (loss) balances, net of the related tax effects allocated to each component of other comprehensive income (loss). Available- for-Sale Securities Interest Rate Agreement Cash Flow Hedges Total (In thousands) September 30, 2019 $ 132 $ (114,715 ) $ (114,583 ) Other comprehensive loss before reclassifications (163 ) — (163 ) Amounts reclassified from accumulated other comprehensive income (1 ) 2,106 2,105 Net current-period other comprehensive income (loss) (164 ) 2,106 1,942 March 31, 2020 $ (32 ) $ (112,609 ) $ (112,641 ) Available- for-Sale Securities Interest Rate Agreement Cash Flow Hedges Total (In thousands) September 30, 2018 $ 8,124 $ (91,771 ) $ (83,647 ) Other comprehensive income (loss) before reclassifications 97 (25,966 ) (25,869 ) Amounts reclassified from accumulated other comprehensive income — 916 916 Net current-period other comprehensive income (loss) 97 (25,050 ) (24,953 ) Cumulative effect of accounting change (8,210 ) — (8,210 ) March 31, 2019 $ 11 $ (116,821 ) $ (116,810 ) |
Interim Pension and Other Postr
Interim Pension and Other Postretirement Benefit Plan Information | 6 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits, Description [Abstract] | |
Interim Pension and Other Postretirement Benefit Plan Information | Interim Pension and Other Postretirement Benefit Plan Information The components of our net periodic pension cost for our pension and other postretirement benefit plans for the three and six months ended March 31, 2020 and 2019 are presented in the following tables. Most of these costs are recoverable through our tariff rates. A portion of these costs is capitalized into our rate base or deferred as a regulatory asset or liability. The remaining costs are recorded as a component of operation and maintenance expense or other non-operating expense. Three Months Ended March 31 Pension Benefits Other Benefits 2020 2019 2020 2019 (In thousands) Components of net periodic pension cost: Service cost $ 4,652 $ 4,045 $ 3,366 $ 2,703 Interest cost (1) 5,843 6,801 2,653 2,958 Expected return on assets (1) (7,079 ) (7,113 ) (2,625 ) (2,665 ) Amortization of prior service cost (credit) (1) (58 ) (58 ) 43 44 Amortization of actuarial (gain) loss (1) 3,242 1,607 (334 ) (2,044 ) Net periodic pension cost $ 6,600 $ 5,282 $ 3,103 $ 996 Six Months Ended March 31 Pension Benefits Other Benefits 2020 2019 2020 2019 (In thousands) Components of net periodic pension cost: Service cost $ 9,305 $ 8,090 $ 6,733 $ 5,405 Interest cost (1) 11,686 13,600 5,306 5,919 Expected return on assets (1) (14,158 ) (14,226 ) (5,249 ) (5,330 ) Amortization of prior service cost (credit) (1) (116 ) (116 ) 87 87 Amortization of actuarial (gain) loss (1) 6,483 3,215 (669 ) (4,089 ) Net periodic pension cost $ 13,200 $ 10,563 $ 6,208 $ 1,992 (1) The components of net periodic cost other than the service cost component are included in the line item other non-operating expense in the condensed consolidated statements of comprehensive income or are capitalized on the condensed consolidated balance sheets as a regulatory asset or liability, as described in Note 2 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . The amount of funding required for our defined benefit plan is determined in accordance with the Pension Protection Act of 2006 (PPA) and is influenced by the funded position of the plan when the funding requirements are determined on January 1 of each year. Based upon the determination as of January 1, 2020, we are not required to make a minimum contribution to our defined benefit plan during fiscal 2020. However, we may consider whether a voluntary contribution is prudent to maintain certain funding levels. For the six months ended March 31, 2020 we contributed $7.4 million to our postretirement medical plans. We anticipate contributing a total of between $10 million and $20 million to our postretirement plans during fiscal 2020 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Environmental Matters In the normal course of business, we are subject to various legal and regulatory proceedings. For such matters, we record liabilities when they are considered probable and estimable, based on currently available facts, our historical experience and our estimates of the ultimate outcome or resolution of the liability in the future. While the outcome of these proceedings is uncertain and a loss in excess of the amount we have accrued is possible though not reasonably estimable, it is the opinion of management that any amounts exceeding the accruals will not have a material adverse impact on our financial position, results of operations or cash flows. We maintain liability insurance for various risks associated with the operation of our natural gas pipelines and facilities, including for property damage and bodily injury. These liability insurance policies generally require us to be responsible for the first $1.0 million (self-insured retention) of each incident. The National Transportation Safety Board (NTSB) is investigating an incident that occurred at a Dallas, Texas residence on February 23, 2018 that resulted in one fatality and injuries to four other residents. Together with the Railroad Commission of Texas (RRC) and the Pipeline and Hazardous Materials Safety Administration, Atmos Energy is a party to the investigation and in that capacity is working closely with the NTSB to help determine the cause of this incident. We are a party to various other litigation and environmental-related matters or claims that have arisen in the ordinary course of our business. While the results of such litigation and response actions to such environmental-related matters or claims cannot be predicted with certainty, we continue to believe the final outcome of such litigation and matters or claims will not have a material adverse effect on our financial condition, results of operations or cash flows. Purchase Commitments Our distribution divisions maintain supply contracts with several vendors that generally cover a period of up to one year. Commitments for estimated base gas volumes are established under these contracts on a monthly basis at contractually negotiated prices. Commitments for incremental daily purchases are made as necessary during the month in accordance with the terms of the individual contract. Our Mid-Tex Division also maintains a limited number of long-term supply contracts to ensure a reliable source of gas for our customers in its service area, which obligate it to purchase specified volumes at prices indexed to natural gas hubs. These purchase commitment contracts are detailed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . At March 31, 2020 , we were committed to purchase 44.1 Bcf within one year, 61.5 Bcf within two to three years and 3.4 Bcf beyond three years under indexed contracts. Rate Regulatory Proceedings As of March 31, 2020 , routine rate regulatory proceedings were in progress in several of our service areas, which are discussed in further detail below in Management’s Discussion and Analysis — Recent Ratemaking Developments . Except for these proceedings, there were no material changes to rate regulatory proceedings for the six months ended March 31, 2020 . |
Financial Instruments
Financial Instruments | 6 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments We currently use financial instruments to mitigate commodity price risk and periodically to mitigate interest rate risk. The objectives and strategies for using financial instruments and the related accounting for these financial instruments are fully described in Notes 2 and 14 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . During the six months ended March 31, 2020 , there were no material changes in our objectives, strategies and accounting for using financial instruments. Our financial instruments do not contain any credit-risk-related or other contingent features that could cause payments to be accelerated when our financial instruments are in net liability positions. The following summarizes those objectives and strategies. Commodity Risk Management Activities Our purchased gas cost adjustment mechanisms essentially insulate our distribution segment from commodity price risk; however, our customers are exposed to the effects of volatile natural gas prices. We manage this exposure through a combination of physical storage, fixed-price forward contracts and financial instruments, primarily over-the-counter swap and option contracts, in an effort to minimize the impact of natural gas price volatility on our customers during the winter heating season. We typically seek to hedge between 25 and 50 percent of anticipated heating season gas purchases using financial instruments. For the 2019 - 2020 heating season (generally October through March), in the jurisdictions where we are permitted to utilize financial instruments, we hedged approximately 49 percent , or 19.9 Bcf of the winter flowing gas requirements. We have not designated these financial instruments as hedges for accounting purposes. Interest Rate Risk Management Activities We manage interest rate risk by periodically entering into financial instruments to effectively fix the Treasury yield component of the interest cost associated with anticipated financings. In April 2020, we entered into forward starting interest rate swaps to effectively fix the Treasury yield component associated with $500 million of a planned issuance of unsecured senior notes in fiscal 2021 at 0.69% and $450 million of a planned issuance of unsecured senior notes in fiscal 2022 at 1.33% , which we designated as cash flow hedges at the time the agreements were executed. Accordingly, unrealized gains and losses associated with the forward starting interest rate swaps will be recorded as a component of accumulated other comprehensive income (loss). When the forward starting interest rate swaps settle, the realized gain or loss will be recorded as a component of accumulated other comprehensive income (loss) and recognized as a component of interest charges over the life of the related financing arrangement. Hedge ineffectiveness to the extent incurred, will be reported as a component of interest charges. As of March 31, 2020 , we had $112.6 million of net realized losses in AOCI associated with the settlement of financial instruments used to fix the Treasury yield component of the interest cost of financing various issuances of long-term debt and senior notes, which will be recognized as a component of interest charges over the life of the associated notes from the date of settlement. The remaining amortization periods for these settled amounts extend through fiscal 2049. Quantitative Disclosures Related to Financial Instruments The following tables present detailed information concerning the impact of financial instruments on our condensed consolidated balance sheet and statements of comprehensive income. As of March 31, 2020 , our financial instruments were comprised of both long and short commodity positions. A long position is a contract to purchase the commodity, while a short position is a contract to sell the commodity. As of March 31, 2020 , we had 4,510 MMcf of net long commodity contracts outstanding. These contracts have not been designated as hedges. Financial Instruments on the Balance Sheet The following tables present the fair value and balance sheet classification of our financial instruments as of March 31, 2020 and September 30, 2019 . The gross amounts of recognized assets and liabilities are netted within our unaudited condensed consolidated balance sheets to the extent that we have netting arrangements with our counterparties. However, for March 31, 2020 and September 30, 2019 , no gross amounts and no cash collateral were netted within our consolidated balance sheet. Balance Sheet Location Assets Liabilities (In thousands) March 31, 2020 Not Designated As Hedges: Commodity contracts Other current assets / Other current liabilities $ 880 $ (1,714 ) Commodity contracts Deferred charges and other assets / Deferred credits and other liabilities 2 — Total 882 (1,714 ) Gross / Net Financial Instruments $ 882 $ (1,714 ) Balance Sheet Location Assets Liabilities (In thousands) September 30, 2019 Not Designated As Hedges: Commodity contracts Other current assets / Other current liabilities $ 1,586 $ (4,552 ) Commodity contracts Deferred charges and other assets / Deferred credits and other liabilities 225 (1,249 ) Total 1,811 (5,801 ) Gross / Net Financial Instruments $ 1,811 $ (5,801 ) Impact of Financial Instruments on the Statement of Comprehensive Income Cash Flow Hedges As discussed above, in the past our distribution segment had interest rate agreements, which we designated as cash flow hedges at the time the agreements were executed. The net loss on settled interest rate agreements reclassified from AOCI into interest charges on our condensed consolidated statements of comprehensive income for the three months ended March 31, 2020 and 2019 was $1.4 million and $0.6 million and for the six months ended March 31, 2020 and 2019 was $2.7 million and $1.2 million . The following table summarizes the gains and losses arising from hedging transactions that were recognized as a component of other comprehensive income (loss), net of taxes, for the three and six months ended March 31, 2020 and 2019 . The amounts included in the table below exclude gains and losses arising from ineffectiveness because those amounts are immediately recognized in the statement of comprehensive income as incurred. Three Months Ended March 31 Six Months Ended March 31 2020 2019 2020 2019 (In thousands) Increase (decrease) in fair value: Interest rate agreements $ — $ (3,250 ) $ — $ (25,966 ) Recognition of losses in earnings due to settlements: Interest rate agreements 1,053 458 2,106 916 Total other comprehensive income (loss) from hedging, net of tax $ 1,053 $ (2,792 ) $ 2,106 $ (25,050 ) Deferred gains (losses) recorded in AOCI associated with our interest rate agreements are recognized in earnings as they are amortized over the terms of the underlying debt instruments. The following amounts, net of deferred taxes, represent the expected recognition in earnings, as of March 31, 2020 , of the deferred losses recorded in AOCI associated with our financial instruments, based upon the fair values of these financial instruments at the date of settlement. Interest Rate Agreements (In thousands) Next twelve months $ (4,212 ) Thereafter (108,397 ) Total $ (112,609 ) Financial Instruments Not Designated as Hedges As discussed above, commodity contracts which are used in our distribution segment are not designated as hedges. However, there is no earnings impact on our distribution segment as a result of the use of these financial instruments because the gains and losses arising from the use of these financial instruments are recognized in the consolidated statement of comprehensive income as a component of purchased gas cost when the related costs are recovered through our rates and recognized in revenue. Accordingly, the impact of these financial instruments is excluded from this presentation. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We report certain assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We record cash and cash equivalents, accounts receivable and accounts payable at carrying value, which substantially approximates fair value due to the short-term nature of these assets and liabilities. For other financial assets and liabilities, we primarily use quoted market prices and other observable market pricing information to minimize the use of unobservable pricing inputs in our measurements when determining fair value. The methods used to determine fair value for our assets and liabilities are fully described in Note 2 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . During the six months ended March 31, 2020 , there were no changes in these methods. Fair value measurements also apply to the valuation of our pension and postretirement plan assets. Current accounting guidance requires employers to annually disclose information about fair value measurements of the assets of a defined benefit pension or other postretirement plan. The fair value of these assets is presented in Note 8 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . Quantitative Disclosures Financial Instruments The classification of our fair value measurements requires judgment regarding the degree to which market data is observable or corroborated by observable market data. Authoritative accounting literature establishes a fair value hierarchy that prioritizes the inputs used to measure fair value based on observable and unobservable data. The hierarchy categorizes the inputs into three levels, with the highest priority given to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1), with the lowest priority given to unobservable inputs (Level 3). The following tables summarize, by level within the fair value hierarchy, our assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2020 and September 30, 2019 . Assets and liabilities are categorized in their entirety based on the lowest level of input that is significant to the fair value measurement. Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) (1) Significant Other Unobservable Inputs (Level 3) Netting and Cash Collateral March 31, 2020 (In thousands) Assets: Financial instruments $ — $ 882 $ — $ — $ 882 Debt and equity securities Registered investment companies 35,839 — — — 35,839 Bond mutual funds 25,905 — — — 25,905 Bonds (2) — 32,520 — — 32,520 Money market funds — 1,815 — — 1,815 Total debt and equity securities 61,744 34,335 — — 96,079 Total assets $ 61,744 $ 35,217 $ — $ — $ 96,961 Liabilities: Financial instruments $ — $ 1,714 $ — $ — $ 1,714 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) (1) Significant Other Unobservable Inputs (Level 3) Netting and Cash Collateral September 30, 2019 (In thousands) Assets: Financial instruments $ — $ 1,811 $ — $ — $ 1,811 Debt and equity securities Registered investment companies 41,406 — — — 41,406 Bond mutual funds 25,966 — — — 25,966 Bonds (2) — 31,915 — — 31,915 Money market funds — 2,596 — — 2,596 Total debt and equity securities 67,372 34,511 — — 101,883 Total assets $ 67,372 $ 36,322 $ — $ — $ 103,694 Liabilities: Financial instruments $ — $ 5,801 $ — $ — $ 5,801 (1) Our Level 2 measurements consist of over-the-counter options and swaps, which are valued using a market-based approach in which observable market prices are adjusted for criteria specific to each instrument, such as the strike price, notional amount or basis differences, municipal and corporate bonds, which are valued based on the most recent available quoted market prices and money market funds that are valued at cost. (2) Our investments in bonds are considered available-for-sale debt securities in accordance with current accounting guidance. Debt and equity securities are comprised of our available-for-sale debt securities and our equity securities. We regularly evaluate the performance of our available-for-sale debt securities on an investment by investment basis for impairment, taking into consideration the investment’s purpose, volatility and current returns. If a determination is made that a decline in fair value is other than temporary, the related investment is written down to its estimated fair value and the other-than-temporary impairment is recognized in the statement of comprehensive income. At March 31, 2020 and September 30, 2019 , the amortized cost of our available-for-sale debt securities was $32.6 million and $31.7 million . At March 31, 2020 , we maintained investments in bonds that have contractual maturity dates ranging from April 2020 through September 2022. Other Fair Value Measures Our long-term debt is recorded at carrying value. The fair value of our long-term debt, excluding finance leases, is determined using third party market value quotations, which are considered Level 1 fair value measurements for debt instruments with a recent, observable trade or Level 2 fair value measurements for debt instruments where fair value is determined using the most recent available quoted market price. The carrying value of our finance leases materially approximates fair value. The following table presents the carrying value and fair value of our long-term debt, excluding finance leases, as of March 31, 2020 and September 30, 2019 : March 31, 2020 September 30, 2019 (In thousands) Carrying Amount $ 4,360,000 $ 3,560,000 Fair Value $ 4,863,851 $ 4,216,249 |
Concentration of Credit Risk
Concentration of Credit Risk | 6 Months Ended |
Mar. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk Information regarding our concentration of credit risk is disclosed in Note 17 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . During the six months ended March 31, 2020 , there were no material changes in our concentration of credit risk. |
Unaudited Financial Informati_2
Unaudited Financial Information (Policies) | 6 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Accounting pronouncements adopted and not yet adopted | Accounting pronouncements adopted in fiscal 2020 In February 2016, the Financial Accounting Standards Board (FASB) issued a comprehensive new leasing standard that requires lessees to recognize a lease liability and a right-of-use (ROU) asset for all leases, including operating leases on its balance sheet. The new standard was effective for us beginning on October 1, 2019. See Note 6 to the unaudited condensed consolidated financial statements for further details regarding our adoption of the new lease standard and the related disclosures. Accounting pronouncements that will be effective after fiscal 2020 In March 2020, the FASB issued optional guidance which will ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by the cessation of the London Interbank Offered Rate (LIBOR). The amendments can be elected immediately, as of March 12, 2020, through December 31, 2022. We are currently evaluating if we will apply the optional guidance as we assess the impact of the cessation of LIBOR on our current contracts and hedging relationships and the potential impact on our financial position, results of operations and cash flows. In December 2019, the FASB issued new guidance related to accounting for income taxes which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocations and calculating income taxes in interim periods. The new standard also adds guidance to reduce complexity in certain areas, such as recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The new standard will be effective for us beginning on October 1, 2021; early adoption is permitted. We are currently evaluating the potential impact of this new guidance on our financial position, results of operations and cash flows. In June 2016, the FASB issued new guidance which will require credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model. Under this model, entities will estimate credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument. In contrast, current U.S. GAAP is based on an incurred loss model that delays recognition of credit losses until it is probable the loss has been incurred. The new guidance also introduces a new impairment recognition model for available-for-sale debt securities that will require credit losses to be recorded through an allowance account. The new standard will be effective for us beginning on October 1, 2020. We are currently evaluating the potential impact of this new guidance on our financial position, results of operations and cash flows. |
Regulatory assets and liabilities | Regulatory assets and liabilities Accounting principles generally accepted in the United States require cost-based, rate-regulated entities that meet certain criteria to reflect the authorized recovery of costs due to regulatory decisions in their financial statements. As a result, certain costs are permitted to be capitalized rather than expensed because they can be recovered through rates. We record certain costs as regulatory assets when future recovery through customer rates is considered probable. Regulatory liabilities are recorded when it is probable that revenues will be reduced for amounts that will be credited to customers through the ratemaking process. Substantially all of our regulatory assets are recorded as a component of deferred charges and other assets and our regulatory liabilities are recorded as a component of other current liabilities and deferred credits and other liabilities. Deferred gas costs are recorded either in other current assets or liabilities and our regulatory excess deferred taxes and regulatory cost of removal obligation are reported separately. |
Leases | The ROU asset represents the right to use the underlying asset for the lease term, and is equal to the lease liability, adjusted for prepaid or accrued lease payments and any lease incentives that have been paid to us or when we are reasonably certain to incur costs equal to or greater than the allowance defined in the contract. Variable payments included in our leasing arrangements are expensed in the period in which the obligation for these payments is incurred. Variable payments are dependent on usage, output or may vary for other reasons. Most of our variable lease expense is related to tower leases that have escalating payments based on changes to a stated CPI index, and usage of certain office equipment. We have not provided material residual value guarantees for our leases, nor do our leases contain material restrictions or covenants. The lease liability represents the present value of all lease payments over the lease term. The discount rate used to determine the present value of the lease liability is the rate implicit in the lease unless that rate cannot be readily determined. We use the implicit rate stated in the agreement to determine the lease liability for our fleet leases. We use our corporate collateralized incremental borrowing rate as the discount rate for all other lease agreements. This rate is appropriate because we believe it represents the rate we would have incurred to borrow funds to acquire the leased asset over a similar term. We calculated this rate using a combination of inputs, including our current credit rating, quoted market prices of interest rates for our publicly traded unsecured debt, observable market yield curve data for peer companies with a credit rating one notch higher than our current credit rating and the lease term. New Lease Accounting Policy We determine if an arrangement is a lease at the inception of the agreement based on the terms and conditions in the contract. A contract contains a lease if there is an identified asset and we have the right to control the asset. We are the lessee for substantially all of our leasing activity, which primarily includes operating leases for office and warehouse space, tower space, vehicles and heavy equipment used in our operations. We are also a lessee in finance leases for service centers. We record a lease liability and a corresponding ROU asset for all of our leases with a term greater than 12 months. For lease contracts containing renewal and termination options, we include the option period in the lease term when it is reasonably certain the option will be exercised. We most frequently assume renewal options at the inception of the arrangement for our |
Earnings per share | Earnings Per Share We use the two-class method of computing earnings per share because we have participating securities in the form of non-vested restricted stock units with a nonforfeitable right to dividend equivalents, for which vesting is predicated solely on the passage of time. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator. Basic weighted average shares outstanding is calculated based upon the weighted average number of common shares outstanding during the periods presented. Also, this calculation includes fully vested stock awards that have not yet been issued as common stock. Additionally, the weighted average shares outstanding for diluted EPS includes the incremental effects of the forward sale agreements, discussed in Note 8 |
Fair value measurement | Fair Value Measurements We report certain assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We record cash and cash equivalents, accounts receivable and accounts payable at carrying value, which substantially approximates fair value due to the short-term nature of these assets and liabilities. For other financial assets and liabilities, we primarily use quoted market prices and other observable market pricing information to minimize the use of unobservable pricing inputs in our measurements when determining fair value. The methods used to determine fair value for our assets and liabilities are fully described in Note 2 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . During the six months ended March 31, 2020 , there were no changes in these methods. |
Unaudited Financial Informati_3
Unaudited Financial Information (Table) | 6 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Regulatory Assets | Significant regulatory assets and liabilities as of March 31, 2020 and September 30, 2019 included the following: March 31, September 30, (In thousands) Regulatory assets: Pension and postretirement benefit costs $ 80,955 $ 86,089 Infrastructure mechanisms (1) 142,075 131,894 Deferred gas costs — 23,766 Recoverable loss on reacquired debt 5,652 6,551 Deferred pipeline record collection costs 27,811 26,418 Rate case costs 2,250 1,346 Other 7,765 8,483 $ 266,508 $ 284,547 Regulatory liabilities: Regulatory excess deferred taxes (2) $ 715,807 $ 726,307 Regulatory cost of service reserve 3,770 5,238 Regulatory cost of removal obligation 521,319 528,893 Deferred gas costs 115,112 14,112 Asset retirement obligation 17,054 17,054 APT annual adjustment mechanism 68,048 78,402 Other 17,591 16,120 $ 1,458,701 $ 1,386,126 (1) Infrastructure mechanisms in Texas and Louisiana allow for the deferral of all eligible expenses associated with capital expenditures incurred pursuant to these rules, including the recording of interest on deferred expenses until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recoverable through base rates. (2) The Tax Cuts and Jobs Act of 2017 (the "TCJA") resulted in the remeasurement of the net deferred tax liability included in our rate base. Of this amount, $21.4 million as of March 31, 2020 and $21.2 million as of September 30, 2019 is recorded in other current liabilities. These liabilities are being returned to customers in most of our jurisdictions on a provisional basis over 15 to 46 years until formal orders establish the final refund periods. |
Schedule of Regulatory Liabilities | Significant regulatory assets and liabilities as of March 31, 2020 and September 30, 2019 included the following: March 31, September 30, (In thousands) Regulatory assets: Pension and postretirement benefit costs $ 80,955 $ 86,089 Infrastructure mechanisms (1) 142,075 131,894 Deferred gas costs — 23,766 Recoverable loss on reacquired debt 5,652 6,551 Deferred pipeline record collection costs 27,811 26,418 Rate case costs 2,250 1,346 Other 7,765 8,483 $ 266,508 $ 284,547 Regulatory liabilities: Regulatory excess deferred taxes (2) $ 715,807 $ 726,307 Regulatory cost of service reserve 3,770 5,238 Regulatory cost of removal obligation 521,319 528,893 Deferred gas costs 115,112 14,112 Asset retirement obligation 17,054 17,054 APT annual adjustment mechanism 68,048 78,402 Other 17,591 16,120 $ 1,458,701 $ 1,386,126 (1) Infrastructure mechanisms in Texas and Louisiana allow for the deferral of all eligible expenses associated with capital expenditures incurred pursuant to these rules, including the recording of interest on deferred expenses until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recoverable through base rates. (2) The Tax Cuts and Jobs Act of 2017 (the "TCJA") resulted in the remeasurement of the net deferred tax liability included in our rate base. Of this amount, $21.4 million as of March 31, 2020 and $21.2 million as of September 30, 2019 is recorded in other current liabilities. These liabilities are being returned to customers in most of our jurisdictions on a provisional basis over 15 to 46 years until formal orders establish the final refund periods. |
Segment Information (Table)
Segment Information (Table) | 6 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Income statements and capital expenditures for the three and six months ended March 31, 2020 and 2019 by segment are presented in the following tables: Three Months Ended March 31, 2020 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Operating revenues from external parties $ 932,296 $ 45,369 $ — $ 977,665 Intersegment revenues 709 100,868 (101,577 ) — Total operating revenues 933,005 146,237 (101,577 ) 977,665 Purchased gas cost 418,935 202 (101,254 ) 317,883 Operation and maintenance expense 115,851 32,296 (323 ) 147,824 Depreciation and amortization expense 76,265 29,651 — 105,916 Taxes, other than income 68,413 6,191 — 74,604 Operating income 253,541 77,897 — 331,438 Other non-operating income (expense) (5,191 ) 2,202 — (2,989 ) Interest charges 10,797 11,374 — 22,171 Income before income taxes 237,553 68,725 — 306,278 Income tax expense 50,489 16,143 — 66,632 Net income $ 187,064 $ 52,582 $ — $ 239,646 Capital expenditures $ 373,313 $ 92,238 $ — $ 465,551 Three Months Ended March 31, 2019 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Operating revenues from external parties $ 1,057,192 $ 37,453 $ — $ 1,094,645 Intersegment revenues 697 98,197 (98,894 ) — Total operating revenues 1,057,889 135,650 (98,894 ) 1,094,645 Purchased gas cost 570,348 (90 ) (98,582 ) 471,676 Operation and maintenance expense 117,621 32,118 (312 ) 149,427 Depreciation and amortization expense 69,904 26,868 — 96,772 Taxes, other than income 71,053 8,040 — 79,093 Operating income 228,963 68,714 — 297,677 Other non-operating income (expense) 5,263 (1,031 ) — 4,232 Interest charges 15,896 11,053 — 26,949 Income before income taxes 218,330 56,630 — 274,960 Income tax expense 46,137 13,935 — 60,072 Net income $ 172,193 $ 42,695 $ — $ 214,888 Capital expenditures $ 293,270 $ 67,912 $ — $ 361,182 Six Months Ended March 31, 2020 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Operating revenues from external parties $ 1,760,136 $ 93,092 $ — $ 1,853,228 Intersegment revenues 1,373 201,321 (202,694 ) — Total operating revenues 1,761,509 294,413 (202,694 ) 1,853,228 Purchased gas cost 816,493 301 (202,043 ) 614,751 Operation and maintenance expense 230,203 70,517 (651 ) 300,069 Depreciation and amortization expense 152,339 58,639 — 210,978 Taxes, other than income 128,656 14,555 — 143,211 Operating income 433,818 150,401 — 584,219 Other non-operating income (expense) (3,237 ) 5,135 — 1,898 Interest charges 27,159 22,241 — 49,400 Income before income taxes 403,422 133,295 — 536,717 Income tax expense 86,601 31,797 — 118,398 Net income $ 316,821 $ 101,498 $ — $ 418,319 Capital expenditures $ 777,560 $ 217,177 $ — $ 994,737 Six Months Ended March 31, 2019 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Operating revenues from external parties $ 1,895,373 $ 77,054 $ — $ 1,972,427 Intersegment revenues 1,351 193,066 (194,417 ) — Total operating revenues 1,896,724 270,120 (194,417 ) 1,972,427 Purchased gas cost 1,008,080 (448 ) (193,791 ) 813,841 Operation and maintenance expense 223,388 65,265 (626 ) 288,027 Depreciation and amortization expense 139,613 53,224 — 192,837 Taxes, other than income 127,243 16,338 — 143,581 Operating income 398,400 135,741 — 534,141 Other non-operating expense (1,214 ) (2,277 ) — (3,491 ) Interest charges 34,106 20,692 — 54,798 Income before income taxes 363,080 112,772 — 475,852 Income tax expense 76,502 26,816 — 103,318 Net income $ 286,578 $ 85,956 $ — $ 372,534 Capital expenditures $ 595,815 $ 181,771 $ — $ 777,586 Balance sheet information at March 31, 2020 and September 30, 2019 by segment is presented in the following tables: March 31, 2020 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Property, plant and equipment, net $ 9,364,424 $ 3,183,816 $ — $ 12,548,240 Total assets $ 13,946,651 $ 3,403,106 $ (2,633,359 ) $ 14,716,398 September 30, 2019 Distribution Pipeline and Storage Eliminations Consolidated (In thousands) Property, plant and equipment, net $ 8,737,590 $ 3,050,079 $ — $ 11,787,669 Total assets $ 12,579,741 $ 3,279,323 $ (2,491,445 ) $ 13,367,619 |
Earnings Per Share (Table)
Earnings Per Share (Table) | 6 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted earnings per share for the three and six months ended March 31, 2020 and 2019 are calculated as follows: Three Months Ended March 31 Six Months Ended March 31 2020 2019 2020 2019 (In thousands, except per share amounts) Basic Earnings Per Share Net income $ 239,646 $ 214,888 $ 418,319 $ 372,534 Less: Income allocated to participating securities 178 170 314 301 Income available to common shareholders $ 239,468 $ 214,718 $ 418,005 $ 372,233 Basic weighted average shares outstanding 122,916 117,581 122,015 115,690 Net income per share — Basic $ 1.95 $ 1.83 $ 3.43 $ 3.22 Diluted Earnings Per Share Income available to common shareholders $ 239,468 $ 214,718 $ 418,005 $ 372,233 Effect of dilutive shares — — — — Income available to common shareholders $ 239,468 $ 214,718 $ 418,005 $ 372,233 Basic weighted average shares outstanding 122,916 117,581 122,015 115,690 Dilutive shares 81 175 164 104 Diluted weighted average shares outstanding 122,997 117,756 122,179 115,794 Net income per share - Diluted $ 1.95 $ 1.82 $ 3.42 $ 3.21 |
Revenue (Table)
Revenue (Table) | 6 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate our revenue from contracts with customers by customer type and segment and provide a reconciliation to total operating revenues, including intersegment revenues, for the three and six months ended March 31, 2020 and 2019 . Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Distribution Pipeline and Storage Distribution Pipeline and Storage (In thousands) Gas sales revenues: Residential $ 596,315 $ — $ 695,827 $ — Commercial 230,779 — 278,945 — Industrial 25,628 — 35,887 — Public authority and other 14,662 — 17,087 — Total gas sales revenues 867,384 — 1,027,746 — Transportation revenues 28,504 154,748 27,682 142,270 Miscellaneous revenues 6,986 1,335 7,364 2,773 Revenues from contracts with customers 902,874 156,083 1,062,792 145,043 Alternative revenue program revenues (1) 29,638 (9,846 ) (5,397 ) (9,393 ) Other revenues 493 — 494 — Total operating revenues $ 933,005 $ 146,237 $ 1,057,889 $ 135,650 Six Months Ended March 31, 2020 Six Months Ended March 31, 2019 Distribution Pipeline and Storage Distribution Pipeline and Storage (In thousands) Gas sales revenues: Residential $ 1,148,391 $ — $ 1,243,755 $ — Commercial 442,093 — 497,883 — Industrial 50,553 — 70,424 — Public authority and other 27,684 — 30,372 — Total gas sales revenues 1,668,721 — 1,842,434 — Transportation revenues 55,144 306,758 53,082 289,694 Miscellaneous revenues 13,772 6,490 14,314 4,455 Revenues from contracts with customers 1,737,637 313,248 1,909,830 294,149 Alternative revenue program revenues (1) 22,887 (18,835 ) (14,136 ) (24,029 ) Other revenues 985 — 1,030 — Total operating revenues $ 1,761,509 $ 294,413 $ 1,896,724 $ 270,120 (1) In our distribution segment, we have weather-normalization adjustment mechanisms that serve to minimize the effects of weather on our revenue. Additionally, APT has a regulatory mechanism that requires that we share with its tariffed customers 75% of the difference between the total non-tariffed revenues earned during a test period and a revenue benchmark. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Other Pertinent Information Related to Leases | The following table represents our weighted average discount rate at March 31, 2020: March 31, 2020 Weighted average discount rate Finance leases 6.95 % Operating leases 2.92 % March 31, 2020 Weighted average remaining lease term (years) Finance leases 19.45 Operating leases 10.72 three and six months ended March 31, 2020 , we did not have material short-term lease costs or variable lease costs. Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 (In thousands) Finance lease cost $ 105 $ 178 Operating lease cost 10,166 20,091 Total lease cost $ 10,271 $ 20,269 Our ROU assets and lease liabilities are presented as follows on the condensed consolidated balance sheets (unaudited): Balance Sheet Classification March 31, 2020 (In thousands) Assets Finance leases Net Property, Plant and Equipment $ 6,631 Operating leases Deferred charges and other assets 222,653 Total right-of-use assets $ 229,284 Liabilities Current Finance leases Current maturities of long-term debt $ 131 Operating leases Other current liabilities 31,482 Noncurrent Finance leases Long-term debt 6,535 Operating leases Deferred credits and other liabilities 199,563 Total lease liabilities $ 237,711 Other pertinent information related to leases was as follows. During the six months ended March 31, 2020 , amounts paid in cash for our finance leases were not material. Six Months Ended March 31, 2020 (In thousands) Cash paid amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 18,223 Right-of-use assets obtained in exchange for lease obligations Finance leases $ 4,150 Operating leases $ 13,854 |
Schedule of Finance Lease Liability Maturities | Maturities of our lease liabilities as of March 31, 2020 , presented on a rolling 12-month basis, were as follows: Total Finance Leases Operating Leases (In thousands) Year 1 $ 36,723 $ 516 $ 36,207 Year 2 37,066 526 36,540 Year 3 32,468 536 31,932 Year 4 27,244 547 26,697 Year 5 17,088 558 16,530 Thereafter 133,876 9,335 124,541 Total lease payments 284,465 12,018 272,447 Less: Imputed interest 46,754 5,352 41,402 Total $ 237,711 $ 6,666 $ 231,045 Reported as of March 31, 2020 Short-term lease liabilities $ 31,613 $ 131 $ 31,482 Long-term lease liabilities 206,098 6,535 199,563 Total lease liabilities $ 237,711 $ 6,666 $ 231,045 |
Schedule of Operating Lease Liability Maturities | Maturities of our lease liabilities as of March 31, 2020 , presented on a rolling 12-month basis, were as follows: Total Finance Leases Operating Leases (In thousands) Year 1 $ 36,723 $ 516 $ 36,207 Year 2 37,066 526 36,540 Year 3 32,468 536 31,932 Year 4 27,244 547 26,697 Year 5 17,088 558 16,530 Thereafter 133,876 9,335 124,541 Total lease payments 284,465 12,018 272,447 Less: Imputed interest 46,754 5,352 41,402 Total $ 237,711 $ 6,666 $ 231,045 Reported as of March 31, 2020 Short-term lease liabilities $ 31,613 $ 131 $ 31,482 Long-term lease liabilities 206,098 6,535 199,563 Total lease liabilities $ 237,711 $ 6,666 $ 231,045 |
Schedule of Future Minimum Lease Payments for Capital Leases | The future minimum lease payments as of September 30, 2019 were as follows: Operating Leases (1) Capital Lease (In thousands) 2020 $ 21,017 $ 243 2021 20,416 248 2022 19,370 253 2023 18,071 258 2024 15,718 263 Thereafter 105,544 4,343 Total minimum lease payments $ 200,136 5,608 Less amount representing interest 3,018 Present value of net minimum lease payments $ 2,590 (1) Future minimum lease payments do not include amounts for fleet leases and other de minimis items that can be renewed beyond the initial lease term. The Company anticipates renewing the leases beyond the initial term, but the anticipated payments associated with the renewals do not meet the definition of expected minimum lease payments and therefore are not included above. Expected payments are $17.6 million in 2020, $18.0 million in 2021, $11.8 million in 2022, $8.5 million in 2023, $5.4 million 2024 and $2.7 million thereafter. |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments as of September 30, 2019 were as follows: Operating Leases (1) Capital Lease (In thousands) 2020 $ 21,017 $ 243 2021 20,416 248 2022 19,370 253 2023 18,071 258 2024 15,718 263 Thereafter 105,544 4,343 Total minimum lease payments $ 200,136 5,608 Less amount representing interest 3,018 Present value of net minimum lease payments $ 2,590 (1) Future minimum lease payments do not include amounts for fleet leases and other de minimis items that can be renewed beyond the initial lease term. The Company anticipates renewing the leases beyond the initial term, but the anticipated payments associated with the renewals do not meet the definition of expected minimum lease payments and therefore are not included above. Expected payments are $17.6 million in 2020, $18.0 million in 2021, $11.8 million in 2022, $8.5 million in 2023, $5.4 million 2024 and $2.7 million thereafter. |
Debt (Table)
Debt (Table) | 6 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt at March 31, 2020 and September 30, 2019 consisted of the following: March 31, 2020 September 30, 2019 (In thousands) Unsecured 3.00% Senior Notes, due 2027 $ 500,000 $ 500,000 Unsecured 2.625% Senior Notes, due 2029 300,000 — Unsecured 5.95% Senior Notes, due 2034 200,000 200,000 Unsecured 5.50% Senior Notes, due 2041 400,000 400,000 Unsecured 4.15% Senior Notes, due 2043 500,000 500,000 Unsecured 4.125% Senior Notes, due 2044 750,000 750,000 Unsecured 4.30% Senior Notes, due 2048 600,000 600,000 Unsecured 4.125% Senior Notes, due 2049 450,000 450,000 Unsecured 3.375% Senior Notes, due 2049 500,000 — Medium-term note Series A, 1995-1, 6.67%, due 2025 10,000 10,000 Unsecured 6.75% Debentures, due 2028 150,000 150,000 Finance lease obligations (see Note 6) 6,666 — Total long-term debt 4,366,666 3,560,000 Less: Original issue (premium) / discount on unsecured senior notes and debentures 663 193 Debt issuance cost 37,006 30,355 Current maturities 131 — $ 4,328,866 $ 3,529,452 |
Shareholders' Equity (Table)
Shareholders' Equity (Table) | 6 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Reconciliation of Changes in Stockholders Equity | The following tables present a reconciliation of changes in stockholders' equity for the three and six months ended March 31, 2020 and 2019 . Common stock Additional Accumulated Retained Total Number of Stated (In thousands, except share and per share data) Balance, September 30, 2019 119,338,925 $ 597 $ 3,712,194 $ (114,583 ) $ 2,152,015 $ 5,750,223 Net income — — — — 178,673 178,673 Other comprehensive income — — — 1,052 — 1,052 Cash dividends ($0.575 per share) — — — — (69,557 ) (69,557 ) Common stock issued: Public and other stock offerings 2,758,929 13 263,259 — — 263,272 Stock-based compensation plans 164,549 1 4,111 — — 4,112 Balance, December 31, 2019 122,262,403 611 3,979,564 (113,531 ) 2,261,131 6,127,775 Net income — — — — 239,646 239,646 Other comprehensive income — — — 890 — 890 Cash dividends ($0.575 per share) — — — — (70,520 ) (70,520 ) Common stock issued: Public and other stock offerings 38,662 1 3,095 — — 3,096 Stock-based compensation plans 7,660 — 3,528 — — 3,528 Balance, March 31, 2020 122,308,725 $ 612 $ 3,986,187 $ (112,641 ) $ 2,430,257 $ 6,304,415 Common stock Additional Accumulated Retained Total Number of Stated (In thousands, except share and per share data) Balance, September 30, 2018 111,273,683 $ 556 $ 2,974,926 $ (83,647 ) $ 1,878,116 $ 4,769,951 Net income — — — — 157,646 157,646 Other comprehensive loss — — — (22,258 ) — (22,258 ) Cash dividends ($0.525 per share) — — — — (58,722 ) (58,722 ) Cumulative effect of accounting change — — — (8,210 ) 8,210 — Common stock issued: Public and other stock offerings 5,434,812 27 498,948 — — 498,975 Stock-based compensation plans 184,464 1 2,602 — — 2,603 Balance, December 31, 2018 116,892,959 584 3,476,476 (114,115 ) 1,985,250 5,348,195 Net income — — — — 214,888 214,888 Other comprehensive loss — — — (2,695 ) — (2,695 ) Cash dividends ($0.525 per share) — — — — (61,606 ) (61,606 ) Common stock issued: Public and other stock offerings 61,006 1 5,453 — — 5,454 Stock-based compensation plans 28,938 — 3,865 — — 3,865 Balance, March 31, 2019 116,982,903 $ 585 $ 3,485,794 $ (116,810 ) $ 2,138,532 $ 5,508,101 |
Summary of Forward Sales Agreements | Additional details are presented below. Issue Quarter Issued Under Shares Available Net Proceeds Available (In thousands) Maturity Forward Price June 30, 2019 ATM 486,201 $ 48,819 9/30/2020 $ 100.41 September 30, 2019 ATM 1,423,599 153,426 9/30/2020 $ 107.77 December 31, 2019 ATM 339,574 36,218 9/30/2020 $ 106.66 March 31, 2020 ATM 1,551,283 180,117 9/30/2020 3/31/2021 $ 116.11 Total 3,800,657 $ 418,580 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables provide the components of our accumulated other comprehensive income (loss) balances, net of the related tax effects allocated to each component of other comprehensive income (loss). Available- for-Sale Securities Interest Rate Agreement Cash Flow Hedges Total (In thousands) September 30, 2019 $ 132 $ (114,715 ) $ (114,583 ) Other comprehensive loss before reclassifications (163 ) — (163 ) Amounts reclassified from accumulated other comprehensive income (1 ) 2,106 2,105 Net current-period other comprehensive income (loss) (164 ) 2,106 1,942 March 31, 2020 $ (32 ) $ (112,609 ) $ (112,641 ) Available- for-Sale Securities Interest Rate Agreement Cash Flow Hedges Total (In thousands) September 30, 2018 $ 8,124 $ (91,771 ) $ (83,647 ) Other comprehensive income (loss) before reclassifications 97 (25,966 ) (25,869 ) Amounts reclassified from accumulated other comprehensive income — 916 916 Net current-period other comprehensive income (loss) 97 (25,050 ) (24,953 ) Cumulative effect of accounting change (8,210 ) — (8,210 ) March 31, 2019 $ 11 $ (116,821 ) $ (116,810 ) |
Interim Pension and Other Pos_2
Interim Pension and Other Postretirement Benefit Plan Information (Table) | 6 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits, Description [Abstract] | |
Schedule of Net Benefit Costs | The components of our net periodic pension cost for our pension and other postretirement benefit plans for the three and six months ended March 31, 2020 and 2019 are presented in the following tables. Most of these costs are recoverable through our tariff rates. A portion of these costs is capitalized into our rate base or deferred as a regulatory asset or liability. The remaining costs are recorded as a component of operation and maintenance expense or other non-operating expense. Three Months Ended March 31 Pension Benefits Other Benefits 2020 2019 2020 2019 (In thousands) Components of net periodic pension cost: Service cost $ 4,652 $ 4,045 $ 3,366 $ 2,703 Interest cost (1) 5,843 6,801 2,653 2,958 Expected return on assets (1) (7,079 ) (7,113 ) (2,625 ) (2,665 ) Amortization of prior service cost (credit) (1) (58 ) (58 ) 43 44 Amortization of actuarial (gain) loss (1) 3,242 1,607 (334 ) (2,044 ) Net periodic pension cost $ 6,600 $ 5,282 $ 3,103 $ 996 Six Months Ended March 31 Pension Benefits Other Benefits 2020 2019 2020 2019 (In thousands) Components of net periodic pension cost: Service cost $ 9,305 $ 8,090 $ 6,733 $ 5,405 Interest cost (1) 11,686 13,600 5,306 5,919 Expected return on assets (1) (14,158 ) (14,226 ) (5,249 ) (5,330 ) Amortization of prior service cost (credit) (1) (116 ) (116 ) 87 87 Amortization of actuarial (gain) loss (1) 6,483 3,215 (669 ) (4,089 ) Net periodic pension cost $ 13,200 $ 10,563 $ 6,208 $ 1,992 (1) The components of net periodic cost other than the service cost component are included in the line item other non-operating expense in the condensed consolidated statements of comprehensive income or are capitalized on the condensed consolidated balance sheets as a regulatory asset or liability, as described in Note 2 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . |
Financial Instruments (Table)
Financial Instruments (Table) | 6 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables present the fair value and balance sheet classification of our financial instruments as of March 31, 2020 and September 30, 2019 . The gross amounts of recognized assets and liabilities are netted within our unaudited condensed consolidated balance sheets to the extent that we have netting arrangements with our counterparties. However, for March 31, 2020 and September 30, 2019 , no gross amounts and no cash collateral were netted within our consolidated balance sheet. Balance Sheet Location Assets Liabilities (In thousands) March 31, 2020 Not Designated As Hedges: Commodity contracts Other current assets / Other current liabilities $ 880 $ (1,714 ) Commodity contracts Deferred charges and other assets / Deferred credits and other liabilities 2 — Total 882 (1,714 ) Gross / Net Financial Instruments $ 882 $ (1,714 ) Balance Sheet Location Assets Liabilities (In thousands) September 30, 2019 Not Designated As Hedges: Commodity contracts Other current assets / Other current liabilities $ 1,586 $ (4,552 ) Commodity contracts Deferred charges and other assets / Deferred credits and other liabilities 225 (1,249 ) Total 1,811 (5,801 ) Gross / Net Financial Instruments $ 1,811 $ (5,801 ) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the gains and losses arising from hedging transactions that were recognized as a component of other comprehensive income (loss), net of taxes, for the three and six months ended March 31, 2020 and 2019 . The amounts included in the table below exclude gains and losses arising from ineffectiveness because those amounts are immediately recognized in the statement of comprehensive income as incurred. Three Months Ended March 31 Six Months Ended March 31 2020 2019 2020 2019 (In thousands) Increase (decrease) in fair value: Interest rate agreements $ — $ (3,250 ) $ — $ (25,966 ) Recognition of losses in earnings due to settlements: Interest rate agreements 1,053 458 2,106 916 Total other comprehensive income (loss) from hedging, net of tax $ 1,053 $ (2,792 ) $ 2,106 $ (25,050 ) |
Schedule Of Expected Deferred Gains (Losses) Recognition | The following amounts, net of deferred taxes, represent the expected recognition in earnings, as of March 31, 2020 , of the deferred losses recorded in AOCI associated with our financial instruments, based upon the fair values of these financial instruments at the date of settlement. Interest Rate Agreements (In thousands) Next twelve months $ (4,212 ) Thereafter (108,397 ) Total $ (112,609 ) |
Fair Value Measurements (Table)
Fair Value Measurements (Table) | 6 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables summarize, by level within the fair value hierarchy, our assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2020 and September 30, 2019 . Assets and liabilities are categorized in their entirety based on the lowest level of input that is significant to the fair value measurement. Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) (1) Significant Other Unobservable Inputs (Level 3) Netting and Cash Collateral March 31, 2020 (In thousands) Assets: Financial instruments $ — $ 882 $ — $ — $ 882 Debt and equity securities Registered investment companies 35,839 — — — 35,839 Bond mutual funds 25,905 — — — 25,905 Bonds (2) — 32,520 — — 32,520 Money market funds — 1,815 — — 1,815 Total debt and equity securities 61,744 34,335 — — 96,079 Total assets $ 61,744 $ 35,217 $ — $ — $ 96,961 Liabilities: Financial instruments $ — $ 1,714 $ — $ — $ 1,714 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) (1) Significant Other Unobservable Inputs (Level 3) Netting and Cash Collateral September 30, 2019 (In thousands) Assets: Financial instruments $ — $ 1,811 $ — $ — $ 1,811 Debt and equity securities Registered investment companies 41,406 — — — 41,406 Bond mutual funds 25,966 — — — 25,966 Bonds (2) — 31,915 — — 31,915 Money market funds — 2,596 — — 2,596 Total debt and equity securities 67,372 34,511 — — 101,883 Total assets $ 67,372 $ 36,322 $ — $ — $ 103,694 Liabilities: Financial instruments $ — $ 5,801 $ — $ — $ 5,801 (1) Our Level 2 measurements consist of over-the-counter options and swaps, which are valued using a market-based approach in which observable market prices are adjusted for criteria specific to each instrument, such as the strike price, notional amount or basis differences, municipal and corporate bonds, which are valued based on the most recent available quoted market prices and money market funds that are valued at cost. (2) Our investments in bonds are considered available-for-sale debt securities in accordance with current accounting guidance. |
Schedule of Carrying Values and Estimated Fair Values of Long-Term Debt | The following table presents the carrying value and fair value of our long-term debt, excluding finance leases, as of March 31, 2020 and September 30, 2019 : March 31, 2020 September 30, 2019 (In thousands) Carrying Amount $ 4,360,000 $ 3,560,000 Fair Value $ 4,863,851 $ 4,216,249 |
Nature of Business (Details)
Nature of Business (Details) customer in Millions | Mar. 31, 2020customerstateregulated_distribution_division |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of customers serviced | customer | 3,000,000 |
Number of regulated distribution divisions | regulated_distribution_division | 6 |
Number of states with service areas | state | 8 |
Unaudited Financial Informati_4
Unaudited Financial Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2020 | Sep. 30, 2019 | |
Regulatory Asset [Line Items] | ||
Regulatory assets | $ 266,508 | $ 284,547 |
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 1,458,701 | 1,386,126 |
Regulatory excess deferred taxes | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 715,807 | 726,307 |
Regulatory excess deferred taxes | Other Current Liabilities | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | $ 21,400 | 21,200 |
Regulatory excess deferred taxes | Other Current Liabilities | Minimum | ||
Regulatory Liabilities [Line Items] | ||
Return basis, term | 15 years | |
Regulatory excess deferred taxes | Other Current Liabilities | Maximum | ||
Regulatory Liabilities [Line Items] | ||
Return basis, term | 46 years | |
Regulatory cost of service reserve | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | $ 3,770 | 5,238 |
Regulatory cost of removal obligation | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 521,319 | 528,893 |
Deferred gas costs | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 115,112 | 14,112 |
Asset retirement obligation | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 17,054 | 17,054 |
APT annual adjustment mechanism | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 68,048 | 78,402 |
Other | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 17,591 | 16,120 |
Pension and postretirement benefit costs | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 80,955 | 86,089 |
Infrastructure mechanisms | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 142,075 | 131,894 |
Deferred gas costs | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 0 | 23,766 |
Recoverable loss on reacquired debt | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 5,652 | 6,551 |
Deferred pipeline record collection costs | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 27,811 | 26,418 |
Rate case costs | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | 2,250 | 1,346 |
Other | ||
Regulatory Asset [Line Items] | ||
Regulatory assets | $ 7,765 | $ 8,483 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2020USD ($)state | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2020USD ($)state | Mar. 31, 2019USD ($) | Sep. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||||
Number of states with service areas | state | 8 | 8 | |||||
Segment Reporting Information Profit Loss [Abstract] | |||||||
Operating revenues | $ 977,665 | $ 1,094,645 | $ 1,853,228 | $ 1,972,427 | |||
Purchased gas cost | 317,883 | 471,676 | 614,751 | 813,841 | |||
Operation and maintenance expense | 147,824 | 149,427 | 300,069 | 288,027 | |||
Depreciation and amortization expense | 105,916 | 96,772 | 210,978 | 192,837 | |||
Taxes, other than income | 74,604 | 79,093 | 143,211 | 143,581 | |||
Operating income | 331,438 | 297,677 | 584,219 | 534,141 | |||
Other non-operating income (expense) | (2,989) | 4,232 | 1,898 | (3,491) | |||
Interest charges | 22,171 | 26,949 | 49,400 | 54,798 | |||
Income before income taxes | 306,278 | 274,960 | 536,717 | 475,852 | |||
Income tax (benefit) expense | 66,632 | 60,072 | 118,398 | 103,318 | |||
Net income | 239,646 | $ 178,673 | 214,888 | $ 157,646 | 418,319 | 372,534 | |
Capital expenditures | 465,551 | 361,182 | 994,737 | 777,586 | |||
Segment Reporting Information, Balance Sheet [Abstract] | |||||||
Property, plant and equipment, net | 12,548,240 | 12,548,240 | $ 11,787,669 | ||||
Total assets | 14,716,398 | 14,716,398 | 13,367,619 | ||||
Distribution | |||||||
Segment Reporting Information Profit Loss [Abstract] | |||||||
Operating revenues | 932,296 | 1,057,192 | 1,760,136 | 1,895,373 | |||
Pipeline and Storage | |||||||
Segment Reporting Information Profit Loss [Abstract] | |||||||
Operating revenues | 45,369 | 37,453 | 93,092 | 77,054 | |||
Operating Segments | Distribution | |||||||
Segment Reporting Information Profit Loss [Abstract] | |||||||
Operating revenues | 933,005 | 1,057,889 | 1,761,509 | 1,896,724 | |||
Purchased gas cost | 418,935 | 570,348 | 816,493 | 1,008,080 | |||
Operation and maintenance expense | 115,851 | 117,621 | 230,203 | 223,388 | |||
Depreciation and amortization expense | 76,265 | 69,904 | 152,339 | 139,613 | |||
Taxes, other than income | 68,413 | 71,053 | 128,656 | 127,243 | |||
Operating income | 253,541 | 228,963 | 433,818 | 398,400 | |||
Other non-operating income (expense) | (5,191) | 5,263 | (3,237) | (1,214) | |||
Interest charges | 10,797 | 15,896 | 27,159 | 34,106 | |||
Income before income taxes | 237,553 | 218,330 | 403,422 | 363,080 | |||
Income tax (benefit) expense | 50,489 | 46,137 | 86,601 | 76,502 | |||
Net income | 187,064 | 172,193 | 316,821 | 286,578 | |||
Capital expenditures | 373,313 | 293,270 | 777,560 | 595,815 | |||
Segment Reporting Information, Balance Sheet [Abstract] | |||||||
Property, plant and equipment, net | 9,364,424 | 9,364,424 | 8,737,590 | ||||
Total assets | 13,946,651 | 13,946,651 | 12,579,741 | ||||
Operating Segments | Pipeline and Storage | |||||||
Segment Reporting Information Profit Loss [Abstract] | |||||||
Operating revenues | 146,237 | 135,650 | 294,413 | 270,120 | |||
Purchased gas cost | 202 | (90) | 301 | (448) | |||
Operation and maintenance expense | 32,296 | 32,118 | 70,517 | 65,265 | |||
Depreciation and amortization expense | 29,651 | 26,868 | 58,639 | 53,224 | |||
Taxes, other than income | 6,191 | 8,040 | 14,555 | 16,338 | |||
Operating income | 77,897 | 68,714 | 150,401 | 135,741 | |||
Other non-operating income (expense) | 2,202 | (1,031) | 5,135 | (2,277) | |||
Interest charges | 11,374 | 11,053 | 22,241 | 20,692 | |||
Income before income taxes | 68,725 | 56,630 | 133,295 | 112,772 | |||
Income tax (benefit) expense | 16,143 | 13,935 | 31,797 | 26,816 | |||
Net income | 52,582 | 42,695 | 101,498 | 85,956 | |||
Capital expenditures | 92,238 | 67,912 | 217,177 | 181,771 | |||
Segment Reporting Information, Balance Sheet [Abstract] | |||||||
Property, plant and equipment, net | 3,183,816 | 3,183,816 | 3,050,079 | ||||
Total assets | 3,403,106 | 3,403,106 | 3,279,323 | ||||
Intersegment eliminations | |||||||
Segment Reporting Information Profit Loss [Abstract] | |||||||
Operating revenues | (101,577) | (98,894) | (202,694) | (194,417) | |||
Purchased gas cost | (101,254) | (98,582) | (202,043) | (193,791) | |||
Operation and maintenance expense | (323) | (312) | (651) | (626) | |||
Depreciation and amortization expense | 0 | 0 | 0 | 0 | |||
Taxes, other than income | 0 | 0 | 0 | 0 | |||
Operating income | 0 | 0 | 0 | 0 | |||
Other non-operating income (expense) | 0 | 0 | 0 | 0 | |||
Interest charges | 0 | 0 | 0 | 0 | |||
Income before income taxes | 0 | 0 | 0 | 0 | |||
Income tax (benefit) expense | 0 | 0 | 0 | 0 | |||
Net income | 0 | 0 | 0 | 0 | |||
Capital expenditures | 0 | 0 | 0 | 0 | |||
Segment Reporting Information, Balance Sheet [Abstract] | |||||||
Property, plant and equipment, net | 0 | 0 | 0 | ||||
Total assets | (2,633,359) | (2,633,359) | $ (2,491,445) | ||||
Intersegment eliminations | Distribution | |||||||
Segment Reporting Information Profit Loss [Abstract] | |||||||
Operating revenues | 709 | 697 | 1,373 | 1,351 | |||
Intersegment eliminations | Pipeline and Storage | |||||||
Segment Reporting Information Profit Loss [Abstract] | |||||||
Operating revenues | $ 100,868 | $ 98,197 | $ 201,321 | $ 193,066 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | |
Basic Earnings Per Share | ||||||
Net income | $ 239,646 | $ 178,673 | $ 214,888 | $ 157,646 | $ 418,319 | $ 372,534 |
Less: Income allocated to participating securities | 178 | 170 | 314 | 301 | ||
Income available to common shareholders | $ 239,468 | $ 214,718 | $ 418,005 | $ 372,233 | ||
Basic weighted average shares outstanding (in shares) | 122,916 | 117,581 | 122,015 | 115,690 | ||
Net income per share - Basic (USD per share) | $ 1.95 | $ 1.83 | $ 3.43 | $ 3.22 | ||
Diluted Earnings Per Share | ||||||
Income available to common shareholders | $ 239,468 | $ 214,718 | $ 418,005 | $ 372,233 | ||
Effect of dilutive shares | 0 | 0 | 0 | 0 | ||
Income available to common shareholders | $ 239,468 | $ 214,718 | $ 418,005 | $ 372,233 | ||
Basic weighted average shares outstanding (in shares) | 122,916 | 117,581 | 122,015 | 115,690 | ||
Dilutive shares (in shares) | 81 | 175 | 164 | 104 | ||
Diluted weighted average shares outstanding (in shares) | 122,997 | 117,756 | 122,179 | 115,794 | ||
Net income per share - Diluted (USD per share) | $ 1.95 | $ 1.82 | $ 3.42 | $ 3.21 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | $ 977,665 | $ 1,094,645 | $ 1,853,228 | $ 1,972,427 |
Regulatory mechanism threshold (in percent) | 75.00% | |||
Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 932,296 | 1,057,192 | $ 1,760,136 | 1,895,373 |
Pipeline and Storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenues | 45,369 | 37,453 | 93,092 | 77,054 |
Operating Segments | Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 902,874 | 1,062,792 | 1,737,637 | 1,909,830 |
Alternative revenue program revenues | 29,638 | (5,397) | 22,887 | (14,136) |
Other Revenues | 493 | 494 | 985 | 1,030 |
Total operating revenues | 933,005 | 1,057,889 | 1,761,509 | 1,896,724 |
Operating Segments | Distribution | Gas sales revenues: | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 867,384 | 1,027,746 | 1,668,721 | 1,842,434 |
Operating Segments | Distribution | Gas sales revenues: | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 596,315 | 695,827 | 1,148,391 | 1,243,755 |
Operating Segments | Distribution | Gas sales revenues: | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 230,779 | 278,945 | 442,093 | 497,883 |
Operating Segments | Distribution | Gas sales revenues: | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 25,628 | 35,887 | 50,553 | 70,424 |
Operating Segments | Distribution | Gas sales revenues: | Public authority and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 14,662 | 17,087 | 27,684 | 30,372 |
Operating Segments | Distribution | Transportation revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 28,504 | 27,682 | 55,144 | 53,082 |
Operating Segments | Distribution | Miscellaneous revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 6,986 | 7,364 | 13,772 | 14,314 |
Operating Segments | Pipeline and Storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 156,083 | 145,043 | 313,248 | 294,149 |
Alternative revenue program revenues | (9,846) | (9,393) | (18,835) | (24,029) |
Other Revenues | 0 | 0 | 0 | 0 |
Total operating revenues | 146,237 | 135,650 | 294,413 | 270,120 |
Operating Segments | Pipeline and Storage | Gas sales revenues: | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Pipeline and Storage | Gas sales revenues: | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Pipeline and Storage | Gas sales revenues: | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Pipeline and Storage | Gas sales revenues: | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Pipeline and Storage | Gas sales revenues: | Public authority and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Pipeline and Storage | Transportation revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 154,748 | 142,270 | 306,758 | 289,694 |
Operating Segments | Pipeline and Storage | Miscellaneous revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 1,335 | $ 2,773 | $ 6,490 | $ 4,455 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2020 | Oct. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Right-of-use asset | $ 222,653 | |||
Operating lease liabilities | $ 231,045 | |||
Lease and rental expense | $ 10,300 | $ 20,300 | ||
Accounting Standards Update 2016-02 | ||||
Lessee, Lease, Description [Line Items] | ||||
Right-of-use asset | $ 231,300 | |||
Operating lease liabilities | 231,300 | |||
Accrued and prepaid rent reclassified | 6,500 | |||
Deferred rent credits and other liabilities reclassified | $ 2,500 |
Leases - Weighted Averages (Det
Leases - Weighted Averages (Details) | Mar. 31, 2020 |
Leases [Abstract] | |
Finance lease, weighted average remaining lease term | 19 years 5 months 12 days |
Operating lease, weighted average remaining lease term | 10 years 8 months 19 days |
Finance lease, weighted average discount rate (in percent) | 6.95% |
Operating lease, weighted average discount rate (in percent) | 2.92% |
Leases - Income statement prese
Leases - Income statement presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2020 | Mar. 31, 2020 | |
Lessee, Finance Lease, Description [Abstract] | ||
Finance lease cost | $ 105 | $ 178 |
Operating lease cost | 10,166 | 20,091 |
Total lease cost | $ 10,271 | $ 20,269 |
Leases - Balance sheet presenta
Leases - Balance sheet presentation (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Assets | |
Finance leases | $ 6,631 |
Operating leases | 222,653 |
Total right-of-use assets | 229,284 |
Current | |
Finance leases | 131 |
Operating leases | 31,482 |
Noncurrent | |
Finance leases | 6,535 |
Operating leases | 199,563 |
Total lease liabilities | $ 237,711 |
Leases - Other pertinent inform
Leases - Other pertinent information (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating cash flows used for operating leases | $ 18,223 |
Right-of-use assets obtained in exchange for lease obligations, Finance leases | 4,150 |
Right-of-use assets obtained in exchange for lease obligations, Operating leases | $ 13,854 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Leases [Abstract] | ||
Year 1 | $ 36,723 | |
Year 2 | 37,066 | |
Year 3 | 32,468 | |
Year 4 | 27,244 | |
Year 5 | 17,088 | |
Thereafter | 133,876 | |
Total lease payments | 284,465 | |
Less: Imputed interest | 46,754 | |
Total lease liabilities | 237,711 | |
Short-term lease liabilities | 31,613 | |
Long-term lease liabilities | 206,098 | |
Finance Leases | ||
Year 1 | 516 | |
Year 2 | 526 | |
Year 3 | 536 | |
Year 4 | 547 | |
Year 5 | 558 | |
Thereafter | 9,335 | |
Total lease payments | 12,018 | |
Less: Imputed interest | 5,352 | |
Total | 6,666 | $ 0 |
Short-term lease liabilities | 131 | |
Long-term lease liabilities | 6,535 | |
Operating Leases | ||
Year 1 | 36,207 | |
Year 2 | 36,540 | |
Year 3 | 31,932 | |
Year 4 | 26,697 | |
Year 5 | 16,530 | |
Thereafter | 124,541 | |
Total lease payments | 272,447 | |
Less: Imputed interest | 41,402 | |
Total | 231,045 | |
Short-term lease liabilities | 31,482 | |
Long-term lease liabilities | $ 199,563 |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
2020 | $ 21,017 |
2021 | 20,416 |
2022 | 19,370 |
2023 | 18,071 |
2024 | 15,718 |
Thereafter | 105,544 |
Total minimum lease payments | 200,136 |
2020 | 243 |
2021 | 248 |
2022 | 253 |
2023 | 258 |
2024 | 263 |
Thereafter | 4,343 |
Total minimum lease payments | 5,608 |
Less amount representing interest | 3,018 |
Present value of net minimum lease payments | 2,590 |
Fleet Leases Renewed Beyond Initial Lease Term | |
Lessee, Lease, Description [Line Items] | |
2020 | 17,600 |
2021 | 18,000 |
2022 | 11,800 |
2023 | 8,500 |
2024 | 5,400 |
Thereafter | $ 2,700 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Oct. 02, 2019 | Sep. 30, 2019 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 4,360,000 | $ 3,560,000 | |
Finance lease obligations | 6,666 | 0 | |
Total long-term debt | 4,366,666 | 3,560,000 | |
Original issue (premium) / discount on unsecured senior notes and debentures | 663 | 193 | |
Debt issuance cost | 37,006 | 30,355 | |
Current maturities | 131 | 0 | |
Long-term debt, noncurrent | $ 4,328,866 | 3,529,452 | |
Unsecured 3.00% Senior Notes, due 2027 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.00% | ||
Long-term debt | $ 500,000 | 500,000 | |
Unsecured 2.625% Senior Notes, due 2029 | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.625% | 2.625% | |
Long-term debt | $ 300,000 | 0 | |
Unsecured 5.95% Senior Notes, due 2034 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.95% | ||
Long-term debt | $ 200,000 | 200,000 | |
Unsecured 5.50% Senior Notes, due 2041 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.50% | ||
Long-term debt | $ 400,000 | 400,000 | |
Unsecured 4.15% Senior Notes, due 2043 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.15% | ||
Long-term debt | $ 500,000 | 500,000 | |
Unsecured 4.125% Senior Notes, due 2044 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.125% | ||
Long-term debt | $ 750,000 | 750,000 | |
Unsecured 4.30% Senior Notes, due 2048 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.30% | ||
Long-term debt | $ 600,000 | 600,000 | |
Unsecured 4.125% Senior Notes, due 2049 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.125% | ||
Long-term debt | $ 450,000 | 450,000 | |
Unsecured 3.375% Senior Notes, due 2049 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.375% | 3.375% | |
Long-term debt | $ 500,000 | 0 | |
Medium-term note Series A, 1995-1, 6.67%, due 2025 | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.67% | ||
Long-term debt | $ 10,000 | 10,000 | |
Unsecured 6.75% Debentures, due 2028 | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.75% | ||
Long-term debt | $ 150,000 | $ 150,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Apr. 30, 2020USD ($) | Apr. 23, 2020USD ($)credit_facility | Apr. 09, 2020USD ($) | Oct. 02, 2019USD ($) | Mar. 31, 2020USD ($)credit_facility | Apr. 01, 2020USD ($) | Sep. 30, 2019USD ($) |
Line Of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 1,500,000,000 | ||||||
Short-term debt | $ 199,923,000 | $ 464,915,000 | |||||
Maximum debt-to-total-capitalization ratio | 70.00% | ||||||
Debt-to-total-capitalization ratio | 0.44 | ||||||
Minimum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Equity-to-total-capitalization ratio | 50.00% | ||||||
Outstanding indebtedness | $ 15,000,000 | ||||||
Maximum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Equity-to-total-capitalization ratio | 60.00% | ||||||
Outstanding indebtedness | $ 100,000,000 | ||||||
Revolving Credit Facility | |||||||
Line Of Credit Facility [Line Items] | |||||||
Number of credit facilities | credit_facility | 3 | ||||||
Unsecured 2.625% Senior Notes, due 2029 | |||||||
Line Of Credit Facility [Line Items] | |||||||
Debt instrument, face amount | $ 300,000,000 | ||||||
Interest rate | 2.625% | 2.625% | |||||
Effective interest rate | 2.72% | ||||||
Unsecured 3.375% Senior Notes, due 2049 | |||||||
Line Of Credit Facility [Line Items] | |||||||
Debt instrument, face amount | $ 500,000,000 | ||||||
Interest rate | 3.375% | 3.375% | |||||
Debt issuance cost | $ 791,700,000 | ||||||
Effective interest rate | 3.42% | ||||||
Five Year Unsecured Revolving Credit Agreement | |||||||
Line Of Credit Facility [Line Items] | |||||||
Outstanding commercial paper | $ 199,900,000 | $ 464,900,000 | |||||
Five Year Unsecured Revolving Credit Agreement | Commercial Paper | |||||||
Line Of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 1,500,000,000 | ||||||
Debt agreement term | 5 years | ||||||
Accordion feature | $ 250,000,000 | ||||||
Maximum borrowing capacity post accordion feature | 1,750,000,000 | ||||||
$25 Million Bank Loan Agreement | Line of Credit | |||||||
Line Of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 25,000,000 | ||||||
Debt agreement term | 364 days | ||||||
Outstanding borrowings | $ 0 | ||||||
$10 Million Revolving Credit Note | Revolving Credit Facility | |||||||
Line Of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 10,000,000 | ||||||
Debt agreement term | 364 days | ||||||
Remaining borrowing capacity | $ 4,400,000 | ||||||
LIBOR | Five Year Unsecured Revolving Credit Agreement | Commercial Paper | Minimum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Interest rate spread | 0.00% | ||||||
LIBOR | Five Year Unsecured Revolving Credit Agreement | Commercial Paper | Maximum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Interest rate spread | 1.25% | ||||||
Subsequent Event | Revolving Credit Facility | |||||||
Line Of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 2,200,000,000 | ||||||
Number of credit facilities | credit_facility | 4 | ||||||
Subsequent Event | $200 Million Term Loan Agreement | |||||||
Line Of Credit Facility [Line Items] | |||||||
Debt agreement term | 2 years | ||||||
Subsequent Event | Five Year Unsecured Revolving Credit Agreement | Commercial Paper | |||||||
Line Of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | 1,500,000,000 | ||||||
Subsequent Event | $50 Million Bank Loan Agreement | Line of Credit | |||||||
Line Of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 50,000,000 | ||||||
Subsequent Event | $50 Million Revolving Credit Facility | Revolving Credit Facility | |||||||
Line Of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 50,000,000 | ||||||
Debt agreement term | 364 days | ||||||
Subsequent Event | $600 Million Revolving Credit Facility | Revolving Credit Facility | |||||||
Line Of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 600,000,000 | ||||||
Debt agreement term | 364 days | ||||||
Subsequent Event | LIBOR | $600 Million Revolving Credit Facility | Revolving Credit Facility | Minimum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Interest rate spread | 0.00% | ||||||
Subsequent Event | LIBOR | $600 Million Revolving Credit Facility | Revolving Credit Facility | Maximum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Interest rate spread | 1.25% | ||||||
Secured Debt | Subsequent Event | $200 Million Term Loan Agreement | |||||||
Line Of Credit Facility [Line Items] | |||||||
Debt instrument, face amount | $ 200,000,000 | ||||||
Secured Debt | Subsequent Event | LIBOR | $200 Million Term Loan Agreement | |||||||
Line Of Credit Facility [Line Items] | |||||||
Interest rate spread | 1.25% |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Oct. 01, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock outstanding (in shares) | 119,338,925 | 119,338,925 | |||||
Shareholders' equity, beginning balance | $ 6,127,775 | $ 5,750,223 | $ 5,348,195 | $ 4,769,951 | $ 5,750,223 | $ 4,769,951 | |
Net income | 239,646 | 178,673 | 214,888 | 157,646 | 418,319 | 372,534 | |
Other comprehensive income (loss) | 890 | 1,052 | (2,695) | (22,258) | $ 1,942 | (24,953) | |
Cash dividends | (70,520) | (69,557) | (61,606) | (58,722) | |||
Cumulative effect of accounting change | $ (8,210) | ||||||
Public and other stock offerings | 3,096 | 263,272 | 5,454 | 498,975 | |||
Stock-based compensation plans | $ 3,528 | 4,112 | 3,865 | 2,603 | |||
Common stock outstanding (in shares) | 122,308,725 | 122,308,725 | |||||
Shareholders' equity, ending balance | $ 6,304,415 | $ 6,127,775 | $ 5,508,101 | $ 5,348,195 | $ 6,304,415 | $ 5,508,101 | |
Cash dividends per share (USD per share) | $ 0.575 | $ 0.575 | $ 0.525 | $ 0.525 | $ 1.15 | $ 1.05 | |
Common stock | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock outstanding (in shares) | 122,262,403 | 119,338,925 | 116,892,959 | 111,273,683 | 119,338,925 | 111,273,683 | |
Shareholders' equity, beginning balance | $ 611 | $ 597 | $ 584 | $ 556 | $ 597 | $ 556 | |
Public and other stock offerings (in shares) | 38,662 | 2,758,929 | 61,006 | 5,434,812 | |||
Public and other stock offerings | $ 1 | $ 13 | $ 1 | $ 27 | |||
Stock-based compensation plans (in shares) | 7,660 | 164,549 | 28,938 | 184,464 | |||
Stock-based compensation plans | $ 0 | $ 1 | $ 0 | $ 1 | |||
Common stock outstanding (in shares) | 122,308,725 | 122,262,403 | 116,982,903 | 116,892,959 | 122,308,725 | 116,982,903 | |
Shareholders' equity, ending balance | $ 612 | $ 611 | $ 585 | $ 584 | $ 612 | $ 585 | |
Additional Paid-in Capital | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shareholders' equity, beginning balance | 3,979,564 | 3,712,194 | 3,476,476 | 2,974,926 | 3,712,194 | 2,974,926 | |
Public and other stock offerings | 3,095 | 263,259 | 5,453 | 498,948 | |||
Stock-based compensation plans | 3,528 | 4,111 | 3,865 | 2,602 | |||
Shareholders' equity, ending balance | 3,986,187 | 3,979,564 | 3,485,794 | 3,476,476 | 3,986,187 | 3,485,794 | |
Accumulated Other Comprehensive Income (Loss) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shareholders' equity, beginning balance | (113,531) | (114,583) | (114,115) | (83,647) | (114,583) | (83,647) | |
Other comprehensive income (loss) | 890 | 1,052 | (2,695) | (22,258) | |||
Cumulative effect of accounting change | (8,210) | ||||||
Shareholders' equity, ending balance | (112,641) | (113,531) | (116,810) | (114,115) | (112,641) | (116,810) | |
Retained Earnings | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shareholders' equity, beginning balance | 2,261,131 | 2,152,015 | 1,985,250 | 1,878,116 | 2,152,015 | 1,878,116 | |
Net income | 239,646 | 178,673 | 214,888 | 157,646 | |||
Cash dividends | (70,520) | (69,557) | (61,606) | (58,722) | |||
Cumulative effect of accounting change | $ 8,210 | ||||||
Shareholders' equity, ending balance | $ 2,430,257 | $ 2,261,131 | $ 2,138,532 | $ 1,985,250 | $ 2,430,257 | $ 2,138,532 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Oct. 01, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Shareholders' equity, beginning balance | $ 6,127,775 | $ 5,750,223 | $ 5,348,195 | $ 4,769,951 | $ 5,750,223 | $ 4,769,951 | |
Other comprehensive loss before reclassifications | (163) | (25,869) | |||||
Amounts reclassified from accumulated other comprehensive income | 2,105 | 916 | |||||
Net current-period other comprehensive income (loss) | 890 | 1,052 | (2,695) | (22,258) | 1,942 | (24,953) | |
Cumulative effect of accounting change | $ (8,210) | ||||||
Shareholders' equity, ending balance | 6,304,415 | 6,127,775 | 5,508,101 | 5,348,195 | 6,304,415 | 5,508,101 | |
Available- for-Sale Securities | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Shareholders' equity, beginning balance | 132 | 8,124 | 132 | 8,124 | |||
Other comprehensive loss before reclassifications | (163) | 97 | |||||
Amounts reclassified from accumulated other comprehensive income | (1) | 0 | |||||
Net current-period other comprehensive income (loss) | (164) | 97 | |||||
Cumulative effect of accounting change | (8,210) | ||||||
Shareholders' equity, ending balance | (32) | 11 | (32) | 11 | |||
Interest Rate Agreement Cash Flow Hedges | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Shareholders' equity, beginning balance | (114,715) | (91,771) | (114,715) | (91,771) | |||
Other comprehensive loss before reclassifications | 0 | (25,966) | |||||
Amounts reclassified from accumulated other comprehensive income | 2,106 | 916 | |||||
Net current-period other comprehensive income (loss) | 2,106 | (25,050) | |||||
Cumulative effect of accounting change | 0 | ||||||
Shareholders' equity, ending balance | (112,609) | (116,821) | (112,609) | (116,821) | |||
Accumulated Other Comprehensive Income (Loss) | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Shareholders' equity, beginning balance | (113,531) | (114,583) | (114,115) | (83,647) | (114,583) | (83,647) | |
Net current-period other comprehensive income (loss) | 890 | 1,052 | (2,695) | (22,258) | |||
Cumulative effect of accounting change | $ (8,210) | ||||||
Shareholders' equity, ending balance | $ (112,641) | $ (113,531) | $ (116,810) | $ (114,115) | $ (112,641) | $ (116,810) |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) | Nov. 30, 2018USD ($)Forward_sellershares | Mar. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2019USD ($)$ / sharesshares | Feb. 12, 2020USD ($) | Feb. 11, 2020USD ($) |
Class of Stock [Line Items] | |||||
Value of shares authorized | $ 1,000,000,000 | ||||
Forward contract indexed to issuer's equity, settlement alternatives, cash, at fair value | $ 418,580,000 | ||||
Net proceeds from equity offering | 258,047,000 | $ 494,085,000 | |||
Number of forward sellers | Forward_seller | 2 | ||||
Shelf Registration Statement | |||||
Class of Stock [Line Items] | |||||
Debt and equity securities authorized for issuance | $ 4,000,000,000 | ||||
Debt and equity securities authorized for issuance value remaining | $ 3,000,000,000 | ||||
At-The-Market | |||||
Class of Stock [Line Items] | |||||
Forward sales equity agreement (in shares) | shares | 1,890,857 | ||||
Forward contract indexed to issuer's equity, settlement alternatives, cash, at fair value | $ 219,900,000 | ||||
Stock issued during period, new issues (in shares) | shares | 2,234,871 | ||||
Value of shares available for issuance | $ 855,000,000 | ||||
Net proceeds from equity offering | 213,600,000 | ||||
Common Stock Block Trade | |||||
Class of Stock [Line Items] | |||||
Stock issued during period, new issues (in shares) | shares | 5,390,836 | ||||
Net proceeds from equity offering | $ 494,100,000 | ||||
Gross proceeds from equity offering | 500,000,000 | ||||
Forward Sales Equity Agreements | |||||
Class of Stock [Line Items] | |||||
Forward contract indexed to issuer's equity, settlement alternatives, cash, at fair value | $ 247,500,000 | $ 418,600,000 | |||
Stock issued during period, new issues (in shares) | shares | 2,668,464 | 485,189 | 1,670,509 | ||
Net proceeds from equity offering | $ 44,400,000 | ||||
Forward sales equity agreement, forward rate per share | $ / shares | $ 110.13 | $ 95.46 |
Shareholders' Equity - Forward
Shareholders' Equity - Forward Sales Agreement (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Class of Stock [Line Items] | |
Shares Available (in shares) | shares | 3,800,657 |
Net Proceeds Available | $ | $ 418,580 |
June 30, 2019 | |
Class of Stock [Line Items] | |
Shares Available (in shares) | shares | 486,201 |
Net Proceeds Available | $ | $ 48,819 |
Forward Price (dollars per share) | $ / shares | $ 100.41 |
September 30, 2019 | |
Class of Stock [Line Items] | |
Shares Available (in shares) | shares | 1,423,599 |
Net Proceeds Available | $ | $ 153,426 |
Forward Price (dollars per share) | $ / shares | $ 107.77 |
December 31, 2019 | |
Class of Stock [Line Items] | |
Shares Available (in shares) | shares | 339,574 |
Net Proceeds Available | $ | $ 36,218 |
Forward Price (dollars per share) | $ / shares | $ 106.66 |
March 31, 2020 | |
Class of Stock [Line Items] | |
Shares Available (in shares) | shares | 1,551,283 |
Net Proceeds Available | $ | $ 180,117 |
Forward Price (dollars per share) | $ / shares | $ 116.11 |
Interim Pension and Other Pos_3
Interim Pension and Other Postretirement Benefit Plan Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to postretirement medical plans | $ 7,400 | |||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 4,652 | $ 4,045 | 9,305 | $ 8,090 |
Interest cost | 5,843 | 6,801 | 11,686 | 13,600 |
Expected return on assets | (7,079) | (7,113) | (14,158) | (14,226) |
Amortization of prior service cost (credit) | (58) | (58) | (116) | (116) |
Amortization of actuarial (gain) loss | 3,242 | 1,607 | 6,483 | 3,215 |
Net periodic pension cost | 6,600 | 5,282 | 13,200 | 10,563 |
Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 3,366 | 2,703 | 6,733 | 5,405 |
Interest cost | 2,653 | 2,958 | 5,306 | 5,919 |
Expected return on assets | (2,625) | (2,665) | (5,249) | (5,330) |
Amortization of prior service cost (credit) | 43 | 44 | 87 | 87 |
Amortization of actuarial (gain) loss | (334) | (2,044) | (669) | (4,089) |
Net periodic pension cost | 3,103 | $ 996 | 6,208 | $ 1,992 |
Minimum | Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected future contributions | 10,000 | 10,000 | ||
Maximum | Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected future contributions | $ 20,000 | $ 20,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2020USD ($)Bcf | |
Commitments and Contingencies Disclosure [Abstract] | |
Self-insurance retention expense | $ | $ 1 |
Short-term Contract with Customer | Supply Commitment | |
Long-term Purchase Commitment [Line Items] | |
Long-term purchase commitment, minimum volume required | 44.1 |
Long-term Contract with Customer Within Two To Three Years | Supply Commitment | |
Long-term Purchase Commitment [Line Items] | |
Long-term purchase commitment, minimum volume required | 61.5 |
Long-term Contract with Customer Beyond Three Years | Supply Commitment | |
Long-term Purchase Commitment [Line Items] | |
Long-term purchase commitment, minimum volume required | 3.4 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($)Bcf | Mar. 31, 2019USD ($) | Sep. 30, 2021 | Apr. 01, 2020USD ($) | Sep. 30, 2019USD ($) | |
Derivative [Line Items] | |||||||
Net realized gain (loss) in AOCI | $ (112,600,000) | $ (112,600,000) | |||||
Contract Netting | 0 | 0 | $ 0 | ||||
Cash collateral | 0 | 0 | $ 0 | ||||
Net gain (loss) on settled interest rate agreements | $ (1,400,000) | $ (600,000) | $ (2,700,000) | $ (1,200,000) | |||
Gas Purchases | Not Designated as Hedging Instrument | Commodity contracts | |||||||
Derivative [Line Items] | |||||||
Hedging percent | 49.00% | 49.00% | |||||
Energy measure | Bcf | 19.9 | ||||||
Gas Purchases | Not Designated as Hedging Instrument | Commodity contracts | Long | |||||||
Derivative [Line Items] | |||||||
Energy measure | Bcf | 4.51 | ||||||
Minimum | Gas Purchases | Not Designated as Hedging Instrument | Commodity contracts | |||||||
Derivative [Line Items] | |||||||
Hedging percent | 25.00% | 25.00% | |||||
Maximum | Gas Purchases | Not Designated as Hedging Instrument | Commodity contracts | |||||||
Derivative [Line Items] | |||||||
Hedging percent | 50.00% | 50.00% | |||||
Subsequent Event | Designated as Hedging Instrument | Forward Interest Rate Swap 1 | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount | $ 500,000,000 | ||||||
Subsequent Event | Designated as Hedging Instrument | Forward Interest Rate Swap 2 | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount | $ 450,000,000 | ||||||
Forecast | Unsecured Senior Notes In Fiscal 2021 | |||||||
Derivative [Line Items] | |||||||
Interest rate | 0.69% | ||||||
Forecast | Unsecured Senior Notes In Fiscal 2022 | |||||||
Derivative [Line Items] | |||||||
Interest rate | 1.33% |
Financial Instruments - Schedul
Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Derivatives Fair Value [Line Items] | ||
Net Financial Instruments, Assets | $ 882 | $ 1,811 |
Net Financial Instruments, Liabilities | (1,714) | (5,801) |
Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Gross Financial Instruments, Assets | 882 | 1,811 |
Gross Financial Instruments, Liabilities | (1,714) | (5,801) |
Not Designated as Hedging Instrument | Other Current Assets | Commodity contracts | ||
Derivatives Fair Value [Line Items] | ||
Gross Financial Instruments, Assets | 880 | 1,586 |
Not Designated as Hedging Instrument | Other Current Liabilities | Commodity contracts | ||
Derivatives Fair Value [Line Items] | ||
Gross Financial Instruments, Liabilities | (1,714) | (4,552) |
Not Designated as Hedging Instrument | Deferred Charges and Other Assets | Commodity contracts | ||
Derivatives Fair Value [Line Items] | ||
Gross Financial Instruments, Assets | 2 | 225 |
Not Designated as Hedging Instrument | Deferred Credits and Other Liabilities | Commodity contracts | ||
Derivatives Fair Value [Line Items] | ||
Gross Financial Instruments, Liabilities | $ 0 | $ (1,249) |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Increase (decrease) in fair value: | ||||
Interest rate agreements | $ 0 | $ (3,250) | $ 0 | $ (25,966) |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Interest rate agreements | 1,053 | 458 | 2,106 | 916 |
Total other comprehensive income (loss) from hedging, net of tax | $ 1,053 | $ (2,792) | $ 2,106 | $ (25,050) |
Financial Instruments - Sched_3
Financial Instruments - Schedule Of Expected Deferred Gains (Losses) Recognition (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2020USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Next twelve months | $ (4,212) |
Thereafter | (108,397) |
Total | $ (112,609) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | Mar. 31, 2020 | Sep. 30, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Netting and Cash Collateral | $ 0 | $ 0 |
Financial instruments net assets | 882,000 | 1,811,000 |
Debt and equity securities | 96,079,000 | 101,883,000 |
Total assets | 96,961,000 | 103,694,000 |
Netting and Cash Collateral | 0 | 0 |
Financial instruments net liability | 1,714,000 | 5,801,000 |
Registered investment companies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 35,839,000 | 41,406,000 |
Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 25,905,000 | 25,966,000 |
Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities | 32,520,000 | 31,915,000 |
Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 1,815,000 | 2,596,000 |
Fair Value Inputs Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial instruments gross assets | 0 | 0 |
Debt and equity securities | 61,744,000 | 67,372,000 |
Total assets | 61,744,000 | 67,372,000 |
Financial instruments gross liability | 0 | 0 |
Fair Value Inputs Level 1 | Registered investment companies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 35,839,000 | 41,406,000 |
Fair Value Inputs Level 1 | Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 25,905,000 | 25,966,000 |
Fair Value Inputs Level 1 | Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Fair Value Inputs Level 1 | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Fair Value Inputs Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial instruments gross assets | 882,000 | 1,811,000 |
Debt and equity securities | 34,335,000 | 34,511,000 |
Total assets | 35,217,000 | 36,322,000 |
Financial instruments gross liability | 1,714,000 | 5,801,000 |
Fair Value Inputs Level 2 | Registered investment companies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Fair Value Inputs Level 2 | Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Fair Value Inputs Level 2 | Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities | 32,520,000 | 31,915,000 |
Fair Value Inputs Level 2 | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 1,815,000 | 2,596,000 |
Fair Value Inputs Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial instruments gross assets | 0 | 0 |
Debt and equity securities | 0 | 0 |
Total assets | 0 | 0 |
Financial instruments gross liability | 0 | 0 |
Fair Value Inputs Level 3 | Registered investment companies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Fair Value Inputs Level 3 | Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Fair Value Inputs Level 3 | Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt securities | 0 | 0 |
Fair Value Inputs Level 3 | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Securities | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 |
Schedule of Available For Sale Securities [Abstract] | ||
Cost Basis | $ 32.6 | $ 31.7 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Fair Value Disclosures [Abstract] | ||
Carrying Amount | $ 4,360,000 | $ 3,560,000 |
Fair Value | $ 4,863,851 | $ 4,216,249 |