Note 5 - Other Investments

9 Months Ended

Jun. 30, 2026

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

5.	Other Investments

Midstream has invested less than 1% in the equity interests of the LLC that owns and operates the MVP, Southgate and Boost. The Company accounts for its interest in the LLC under the equity method of accounting given the LLC maintains specific ownership accounts for each investor, and also considering the Company's rights under the LLC management agreement and the Company's involvement as a stakeholder of the MVP. The Company has been using the equity method since the inception of its investment in fiscal 2016.

The Company participates in the earnings of the LLC proportionate to its level of investment, favorably adjusted for a basis difference between the Company's capital account and its carrying value that arose when the Company recorded an other-than-temporary impairment of its investment in 2022. This basis difference amortization is a favorable non-cash adjustment to income over the book life of the MVP, which is 40 years. The Company's share of earnings from the LLC and the basis difference amortization are presented under equity in earnings of unconsolidated affiliates on the condensed consolidated statements of income. The Company received three quarterly cash distributions from the LLC during the first nine months of fiscal 2026 and 2025 totaling approximately $2.4 million and $2.7 million, respectively, and expects future quarterly distributions to be of a similar magnitude to those received to date.

Midstream assesses the value of its investment in the LLC on at least a quarterly basis, and no impairment indicators were identified in fiscal 2026 or 2025.

Investment balances of combined MVP, including Southgate and Boost, as of June 30, 2026 and September 30, 2025, are reflected in the table below:

Balance Sheet location:		June 30, 2026				September 30, 2025
Other Assets:
MVP		$	20,604,780			$	20,538,437
Southgate			997,677				185,260
Boost			659,436				—
Investment in unconsolidated affiliates		$	22,261,893			$	20,723,697

The change in the investment in unconsolidated affiliates is provided below:

		Nine Months Ended June 30,
		2026				2025
Cash investment		$	1,015,960			$	50,894
Change in accrued capital calls			392,163				—
Equity in earnings of unconsolidated affiliates			2,495,239				2,427,470
Distributions from unconsolidated affiliate			(2,365,166	)			(2,658,656	)
Change in investment in unconsolidated affiliates		$	1,538,196			$	(180,292	)

Summary combined unaudited financial statements of MVP, Southgate and Boost are presented below.

		Income Statements
		Three Months Ended June 30,								Nine Months Ended June 30,
		2026				2025				2026				2025
Revenue		$	139,467,118			$	139,410,586			$	437,766,773			$	424,079,412
Operating expenses			(80,999,977	)			(75,210,039	)			(234,212,807	)			(221,547,701	)
AFUDC			4,344,515				45,553				10,100,575				111,088
Other income, net			1,311,601				1,612,418				3,151,190				4,989,603
Net income		$	64,123,257			$	65,858,518			$	216,805,731			$	207,632,402

		Balance Sheets
		June 30, 2026				September 30, 2025
Assets:
Current assets		$	278,541,678			$	173,283,635
Construction work in progress			221,058,546				—
Property, plant and equipment, net			9,309,980,290				9,418,928,665
Other assets			42,990,188				1,789,092
Total assets		$	9,852,570,702			$	9,594,001,392

Liabilities and Equity:
Current liabilities		$	68,352,629			$	40,148,017
Noncurrent liabilities			2,907,315				1,084,072
Capital			9,781,310,758				9,552,769,303
Total liabilities and equity		$	9,852,570,702			$	9,594,001,392