v3.25.2
Fair Value Measurements
 9 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
 
    The FASB authoritative guidance regarding fair value measurements establishes a fair-value hierarchy and prioritizes the inputs used in valuation techniques that measure fair value. Those inputs are prioritized into three levels. Level 1 inputs are unadjusted quoted prices in active markets for assets or liabilities that the Company can access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly at the measurement date. Level 3 inputs are unobservable inputs for the asset or liability at the measurement date. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.
 
    The following table sets forth, by level within the fair value hierarchy, the Company's financial assets and liabilities (as applicable) that were accounted for at fair value on a recurring basis as of June 30, 2025 and September 30, 2024.  Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.  
Recurring Fair Value MeasuresAt fair value as of June 30, 2025
(Thousands of Dollars)   Level 1Level 2Level 3
Netting
Adjustments(1)
Total(1)
Assets:
 
    
Cash Equivalents – Money Market Mutual Funds$26,831 $— $— $— $26,831 
Derivative Financial Instruments:     
Over the Counter Swaps – Gas— 34,445 — (32,440)2,005 
Over the Counter No Cost Collars – Gas— 12,298 — (11,750)548 
Contingent Consideration for Asset Sale— — — — — 
Foreign Currency Contracts— 325 — (484)(159)
Other Investments:     
Balanced Equity Mutual Fund13,143 — — — 13,143 
Fixed Income Mutual Fund16,848 — — — 16,848 
Total$56,822 $47,068 $— $(44,674)$59,216 
Liabilities:     
Derivative Financial Instruments:     
Over the Counter Swaps – Gas$— $62,897 $— $(32,440)$30,457 
Over the Counter No Cost Collars – Gas— 38,513 — (11,750)26,763 
Foreign Currency Contracts— 492 — (484)8 
Total$— $101,902 $— $(44,674)$57,228 
Total Net Assets/(Liabilities)$56,822 $(54,834)$— $— $1,988 

Recurring Fair Value MeasuresAt fair value as of September 30, 2024
(Thousands of Dollars)   Level 1Level 2Level 3
Netting
Adjustments(1)
Total(1)
Assets:
Cash Equivalents – Money Market Mutual Funds$29,238 $— $— $— $29,238 
Derivative Financial Instruments:
Over the Counter Swaps – Gas— 76,009 — (17,198)58,811 
Over the Counter No Cost Collars – Gas — 32,584 — (3,774)28,810 
Contingent Consideration for Asset Sale— 729 — — 729 
Foreign Currency Contracts— 281 — (726)(445)
Other Investments:
Balanced Equity Mutual Fund19,523 — — — 19,523 
Fixed Income Mutual Fund17,374 — — — 17,374 
Total$66,135 $109,603 $— $(21,698)$154,040 
Liabilities:
Derivative Financial Instruments:
Over the Counter Swaps – Gas$— $22,206 $— $(17,198)$5,008 
Over the Counter No Cost Collars – Gas— 3,501 — (3,774)(273)
Foreign Currency Contracts— 726 — (726)— 
Total$— $26,433 $— $(21,698)$4,735 
Total Net Assets/(Liabilities)$66,135 $83,170 $— $— $149,305 

(1)Netting Adjustments represent the impact of legally-enforceable master netting arrangements that allow the Company to net gain and loss positions held with the same counterparties. The net asset or net liability for each counterparty is recorded as an asset or liability on the Company’s balance sheet.

    The following table presents impairments of assets associated with certain nonrecurring fair value measurements within Level 3 of the fair value hierarchy as of June 30, 2025 and 2024 (in thousands):
Impairments
Nonrecurring Fair Value MeasuresNine Months Ended June 30,
SegmentDate of MeasurementFair Value20252024
Impairment of Assets:
Water Disposal AssetsExploration and ProductionDecember 31, 2024$12,880 $33,453 $— 

    In exploring the potential sale of certain water disposal assets during the quarter ended December 31, 2024, the Company determined that the fair market value of such assets was less than the recorded net book value resulting in an impairment charge that reduced the net book value to fair market value. These assets are used to dispose of water from operations in the Exploration and Production segment.
 
Derivative Financial Instruments
 
    The derivative financial instruments reported in Level 2 at June 30, 2025 and September 30, 2024 include natural gas price swap agreements, natural gas no cost collars, and foreign currency contracts, all of which are used in the Company’s Exploration and Production segment. The fair value of the Level 2 price swap agreements and no cost collars is based on an internal cash flow model that uses observable inputs (i.e. SOFR based discount rates for the price swap agreements and basis differential information, if applicable, at active natural gas trading markets). The fair value of the Level 2 foreign currency contracts is determined using the market approach based on observable market transactions of forward Canadian currency rates. 

    The authoritative guidance for fair value measurements and disclosures require consideration of the impact of nonperformance risk (including credit risk) from a market participant perspective in the measurement of the fair value of assets and liabilities.  At June 30, 2025, the Company determined that nonperformance risk associated with the price swap agreements, no cost collars and foreign currency contracts would have no material impact on its financial position or results of operation.  To assess nonperformance risk, the Company considered information such as any applicable collateral posted, master netting arrangements, and applied a market-based method by using the counterparty's (assuming the derivative is in a gain position) or the Company’s (assuming the derivative is in a loss position) credit default swaps rates.
 
    Derivative financial instruments reported in Level 2 at June 30, 2025 also includes the contingent consideration associated with the sale of the Exploration and Production segment's California assets on June 30, 2022. The terms of the purchase and sale agreement specified that the Company could receive up to three annual contingent payments between calendar year 2023 and calendar year 2025, not to exceed $10 million per year, with the amount of each annual payment calculated at $1.0 million for each $1 per barrel that the ICE Brent Average for each calendar year exceeds $95 per barrel up to $105 per barrel. The calendar 2023 and 2024 contingency periods expired with the ICE Brent Average falling below $95 per barrel each calendar year. The fair value of the contingent consideration was calculated using a Monte Carlo simulation model that uses observable inputs, including the ICE Brent closing price as of the valuation date, initial and max trigger price, volatility, risk-free rate, time of maturity and counterparty risk. The fair value of this contingent consideration is estimated to be zero as of June 30, 2025.