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Item 1. Financial Statements

2023-08-03 compared with 2023-05-04 · 169 added, 131 removed, 660 unchanged (31% of the section changed)

4 unchanged sentences

Three Months Ended

March 31, Six Months Ended

June 30, Nine Months Ended

(Thousands of U.S.

14 unchanged sentences

274,608 334,663 1,174,980 1,126,915

Gain on Sale of Assets — 12,736 — 12,736

Operating Income 154,096 180,697 629,844 636,721

10 unchanged sentences

Dividends on Common Stock ( 45,444 ) ( 43,446 ) ( 132,644 ) ( 126,659 )

Balance at March 31 $ 1,810,454 $ 1,407,683 $ 1,810,454 $ 1,407,683

Balance at June 30 $ 1,857,630 $ 1,472,395 $ 1,857,630 $ 1,472,395

Earnings Per Common Share:

7 unchanged sentences

See Notes to Condensed Consolidated Financial Statements

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National Fuel Gas Company

1 unchanged sentence

Three Months Ended

March 31, Six Months Ended

June 30, Nine Months Ended

(Thousands of U.S.

14 unchanged sentences

Other Comprehensive Income (Loss) 5,480 71,386 576,349 ( 69,271 )

Comprehensive Income (Loss) $ 379,762 $ ( 209,900 ) $ 881,439 $ 159,063

Comprehensive Income $ 98,100 $ 179,544 $ 979,538 $ 338,608

See Notes to Condensed Consolidated Financial Statements

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National Fuel Gas Company

28 unchanged sentences

See Notes to Condensed Consolidated Financial Statements

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National Fuel Gas Company

41 unchanged sentences

See Notes to Condensed Consolidated Financial Statements

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National Fuel Gas Company

Consolidated Statements of Cash Flows

Six Months Ended

Nine Months Ended

(Thousands of U.S.

3 unchanged sentences

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

Gain on Sale of Assets — ( 12,736 )

Depreciation, Depletion and Amortization 299,973 275,681

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Net Proceeds from Sale of Oil and Gas Producing Properties — 254,439

Deposit Paid for Upstream Assets ( 12,700 ) —

Acquisition of Upstream Assets ( 124,758 ) —

Sale of Fixed Income Mutual Fund Shares in Grantor Trust 10,000 30,000

3 unchanged sentences

Proceeds from Issuance of Short-Term Note Payable to Bank 250,000 —

Repayment of Short-Term Note Payable to Bank ( 250,000 ) —

Net Change in Other Short-Term Notes Payable to Banks and Commercial Paper 78,500 241,500

Net Proceeds from Issuance of Long-Term Debt 297,533 —

Reduction of Long-Term Debt ( 549,000 ) —

1 unchanged sentence

Net Repurchases of Common Stock ( 6,696 ) ( 9,387 )

Net Cash Used in Financing Activities ( 292,745 ) ( 32,617 )

Net Cash Provided by (Used in) Financing Activities ( 310,316 ) 107,412

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash ( 84,303 ) 466,908

Cash, Cash Equivalents, and Restricted Cash at October 1 137,718 120,138

Cash, Cash Equivalents, and Restricted Cash at March 31 $ 71,533 $ 154,939

Cash, Cash Equivalents, and Restricted Cash at June 30 $ 53,415 $ 587,046

Supplemental Disclosure of Cash Flow Information

1 unchanged sentence

Non-Cash Capital Expenditures $ 71,823 $ 74,415

Non-Cash Contingent Consideration for Asset Sale $ — $ 12,571

See Notes to Condensed Consolidated Financial Statements

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National Fuel Gas Company

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The consolidated financial statements for the year ended September 30, 2023 will be audited by the Company's independent registered public accounting firm after the end of the fiscal year.

The earnings for the six months ended March 31, 2023 should not be taken as a prediction of earnings for the entire fiscal year ending September 30, 2023.

The earnings for the nine months ended June 30, 2023 should not be taken as a prediction of earnings for the entire fiscal year ending September 30, 2023.

Most of the business of the Utility segment is seasonal in nature and is influenced by weather conditions.

3 unchanged sentences

The components, as reported on the Company’s Consolidated Balance Sheets, of the total cash, cash equivalents, and restricted cash presented on the Statement of Cash Flows are as follows (in thousands):

Six Months Ended

March 31, 2023 Six Months Ended

March 31, 2022

March 31, 2023 Balance at October 1, 2022 Balance at

March 31, 2022 Balance at October 1, 2021

Nine Months Ended

June 30, 2023 Nine Months Ended

June 30, 2022

June 30, 2023 Balance at October 1, 2022 Balance at

June 30, 2022 Balance at October 1, 2021

Cash and Temporary Cash Investments $ 53,415 $ 46,048 $ 432,576 $ 31,528

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Account balances are charged off against the allowance approximately twelve months after the account is final billed or when it is anticipated that the receivable will not be recovered.

Activity in the allowance for uncollectible accounts for the six months ended March 31, 2023 and 2022 are as follows (in thousands):

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Activity in the allowance for uncollectible accounts for the nine months ended June 30, 2023 and 2022 are as follows (in thousands):

Balance at Beginning of Period Additions Charged to Costs and Expenses Discounts on Purchased Receivables Net Accounts Receivable Written-Off Balance at End of Period

Six Months Ended March 31, 2023

Nine Months Ended June 30, 2023

Allowance for Uncollectible Accounts $ 40,228 $ 13,142 $ 1,316 $ ( 11,578 ) $ 43,108

Six Months Ended March 31, 2022

Nine Months Ended June 30, 2022

Allowance for Uncollectible Accounts $ 31,639 $ 12,024 $ 1,211 $ ( 2,891 ) $ 41,983

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Gas stored underground normally declines during the first and second quarters of the year and is replenished during the third and fourth quarters.

In the Utility segment, the current cost of replacing gas withdrawn from storage is recorded in the Consolidated Statements of Income and a reserve for gas replacement is recorded in the Consolidated Balance Sheets under the caption “Other Accruals and Current Liabilities.” Such reserve, which amounted to $ 106.8 million at March 31, 2023, is reduced to zero by September 30 of each year as the inventory is replenished.

In the Utility segment, the current cost of replacing gas withdrawn from storage is recorded in the Consolidated Statements of Income and a reserve for gas replacement is recorded in the Consolidated Balance Sheets under the caption “Other Accruals and Current Liabilities.” Such reserve, which amounted to $ 86.5 million at June 30, 2023, is reduced to zero by September 30 of each year as the inventory is replenished.

Property, Plant and Equipment.

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The Company does not recognize any gain or loss on the sale or other disposition of oil and gas properties unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves of oil and gas attributable to a cost center.

The Company's capitalized costs relating to oil and gas producing activities, net of accumulated depreciation, depletion and amortization, were $ 2.2 billion and $ 1.9 billion at March 31, 2023 and September 30, 2022, respectively.

The Company's capitalized costs relating to oil and gas producing activities, net of accumulated depreciation, depletion and amortization, were $ 2.4 billion and $ 1.9 billion at June 30, 2023 and September 30, 2022, respectively.

Capitalized costs include costs related to unproved properties, which are excluded from amortization until proved reserves are found or it is determined that the unproved properties are impaired.

Such costs amounted to $ 73.0 million and $ 66.0 million at March 31, 2023 and September 30, 2022, respectively.

Such costs amounted to $ 190.5 million and $ 66.0 million at June 30, 2023 and September 30, 2022, respectively.

All costs related to unproved properties are reviewed quarterly to determine if impairment has occurred.

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If capitalized costs, net of accumulated depreciation, depletion and amortization and related deferred income taxes, exceed the ceiling at the end of any quarter, a permanent non-cash impairment is required to be charged to earnings in that quarter.

At March 31, 2023, the ceiling exceeded the book value of the oil and gas properties by approximately $ 2.7 billion.

The estimated future net cash flows were decreased by $ 936.8 million for hedging under the ceiling test at March 31, 2023.

At June 30, 2023, the ceiling exceeded the book value of the oil and gas properties by approximately $ 1.8 billion.

The estimated future net cash flows were decreased by $ 460.4 million for hedging under the ceiling test at June 30, 2023.

The principal assets of the Utility, Pipeline and Storage and Gathering segments, consisting primarily of gas distribution pipelines, transmission pipelines, storage facilities, gathering lines and compressor stations, are recorded at historical cost.

There were no indications of any impairments to property, plant and equipment in the Utility, Pipeline and Storage and Gathering segments at March 31, 2023.

There were no indications of any impairments to property, plant and equipment in the Utility, Pipeline and Storage and Gathering segments at June 30, 2023.

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Accumulated Other Comprehensive Loss.

The components of Accumulated Other Comprehensive Loss and changes for the six months ended March 31, 2023 and 2022, net of related tax effect, are as follows (amounts in parentheses indicate debits) (in thousands):

The components of Accumulated Other Comprehensive Loss and changes for the nine months ended June 30, 2023 and 2022, net of related tax effect, are as follows (amounts in parentheses indicate debits) (in thousands):

Gains and Losses on Derivative Financial Instruments Funded Status of the Pension and Other Post-Retirement Benefit Plans Total

Three Months Ended March 31, 2023

Balance at January 1, 2023 $ ( 240,176 ) $ ( 53,570 ) $ ( 293,746 )

Three Months Ended June 30, 2023

Balance at April 1, 2023 $ ( 1,294 ) $ ( 53,570 ) $ ( 54,864 )

Other Comprehensive Gains and Losses Before Reclassifications

1 unchanged sentence

Amounts Reclassified From Other Comprehensive Income ( 41,879 ) — ( 41,879 )

Balance at March 31, 2023 $ ( 1,294 ) $ ( 53,570 ) $ ( 54,864 )

Six Months Ended March 31, 2023

Balance at June 30, 2023 $ 4,186 $ ( 53,570 ) $ ( 49,384 )

Nine Months Ended June 30, 2023

Balance at October 1, 2022 $ ( 572,163 ) $ ( 53,570 ) $ ( 625,733 )

2 unchanged sentences

Amounts Reclassified From Other Comprehensive Income 87,623 — 87,623

Balance at March 31, 2023 $ ( 1,294 ) $ ( 53,570 ) $ ( 54,864 )

Three Months Ended March 31, 2022

Balance at January 1, 2022 $ ( 213,391 ) $ ( 63,635 ) $ ( 277,026 )

Balance at June 30, 2023 $ 4,186 $ ( 53,570 ) $ ( 49,384 )

Three Months Ended June 30, 2022

Balance at April 1, 2022 $ ( 584,812 ) $ ( 69,442 ) $ ( 654,254 )

Other Comprehensive Gains and Losses Before Reclassifications

1 unchanged sentence

Amounts Reclassified From Other Comprehensive Loss 216,708 — 216,708

Other Post-Retirement Adjustment for Regulatory Proceeding — ( 5,807 ) ( 5,807 )

Balance at March 31, 2022 $ ( 584,812 ) $ ( 69,442 ) $ ( 654,254 )

Six Months Ended March 31, 2022

Balance at June 30, 2022 $ ( 513,426 ) $ ( 69,442 ) $ ( 582,868 )

Nine Months Ended June 30, 2022

Balance at October 1, 2021 $ ( 449,962 ) $ ( 63,635 ) $ ( 513,597 )

3 unchanged sentences

Other Post-Retirement Adjustment for Regulatory Proceeding — ( 5,807 ) ( 5,807 )

Balance at March 31, 2022 $ ( 584,812 ) $ ( 69,442 ) $ ( 654,254 )

Balance at June 30, 2022 $ ( 513,426 ) $ ( 69,442 ) $ ( 582,868 )

During the quarter ended March 31, 2022, the PaPUC concluded a regulatory proceeding that addressed the recovery of other post-employment benefit (“OPEB”) expenses in Distribution Corporation's Pennsylvania service territory.

As a result of that proceeding, Distribution Corporation suspended regulatory accounting for OPEB expenses in Pennsylvania and a regulatory deferral of $ 7.4 million ($ 5.8 million after-tax) related to the funded status of Distribution Corporation’s other post-retirement benefit plans in Pennsylvania was reclassified to accumulated other comprehensive loss.

For further discussion of this regulatory proceeding, refer to Note 11 — Regulatory Matters under the heading “Pennsylvania Jurisdiction.”

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Reclassifications Out of Accumulated Other Comprehensive Loss.

The details about the reclassification adjustments out of accumulated other comprehensive loss for the six months ended March 31, 2023 and 2022 are as follows (amounts in parentheses indicate debits to the income statement) (in thousands):

The details about the reclassification adjustments out of accumulated other comprehensive loss for the nine months ended June 30, 2023 and 2022 are as follows (amounts in parentheses indicate debits to the income statement) (in thousands):

Details About Accumulated Other Comprehensive Loss Components Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Statement Where Net Income is Presented

Three Months Ended

March 31, Six Months Ended March 31,

June 30, Nine Months Ended

2023 2022 2023 2022

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The components of the Company’s Other Current Assets are as follows (in thousands):

At March 31, 2023 At September 30, 2022

At June 30, 2023 At September 30, 2022

Prepayments $ 24,060 $ 17,757

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The components of the Company’s Other Accruals and Current Liabilities are as follows (in thousands):

At March 31, 2023 At September 30, 2022

At June 30, 2023 At September 30, 2022

Accrued Capital Expenditures $ 51,078 $ 64,720

9 unchanged sentences

For purposes of determining earnings per common share, the potentially dilutive securities the Company had outstanding were restricted stock units and performance shares.

For the quarter and six months ended March 31, 2023, the diluted weighted average shares outstanding shown on the Consolidated Statements of Income reflects the potential dilution as a result of these securities as determined using the Treasury Stock Method.

For the quarter and nine months ended June 30, 2023, the diluted weighted average shares outstanding shown on the Consolidated Statements of Income reflects the potential dilution as a result of these securities as determined using the Treasury Stock Method.

Restricted stock units and performance shares that are antidilutive are excluded from the calculation of diluted earnings per common share.

There were 9,909 securities and 4,094 securities

excluded as being antidilutive for the quarter and six months ended March 31, 2023, respectively.

There were 13,815 securities and 11,883 securities excluded as being antidilutive for the quarter and six months ended March 31, 2022, respectively.

There were 8,322 securities and 4,526 securities excluded as being antidilutive for the quarter and nine months ended June 30, 2023, respectively.

There were 873 securities and 6,990 securities excluded as being antidilutive for the quarter and nine months ended June 30, 2022, respectively.

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Stock-Based Compensation.

The Company granted 202,259 performance shares during the six months ended March 31, 2023.

The weighted average fair value of such performance shares was $ 64.28 per share for the six months ended March 31, 2023.

The Company granted 202,259 performance shares during the nine months ended June 30, 2023.

The weighted average fair value of such performance shares was $ 64.28 per share for the nine months ended June 30, 2023.

Performance shares are an award constituting units denominated in common stock of the Company, the number of which may be adjusted over a performance cycle based upon the extent to which performance goals have been satisfied.

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The performance shares do not entitle the participant to receive dividends during the vesting period.

The performance shares granted during the six months ended March 31, 2023 include awards that must meet a performance goal related to either relative return on capital over a three-year performance cycle ("ROC performance shares"), methane intensity and greenhouse gas emissions reductions over a three-year performance cycle ("ESG performance shares") or relative shareholder return over a three-year performance cycle ("TSR performance shares").

The performance shares granted during the nine months ended June 30, 2023 include awards that must meet a performance goal related to either relative return on capital over a three-year performance cycle ("ROC performance shares"), methane intensity and greenhouse gas emissions reductions over a three-year performance cycle ("ESG performance shares") or relative shareholder return over a three-year performance cycle ("TSR performance shares").

The performance goal related to the ROC performance shares over the three-year performance cycle is the Company’s total return on capital relative to the total return on capital of other companies in a group selected by the Compensation Committee (“Report Group”).

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This price is multiplied by the number of TSR performance shares awarded, the result of which is recorded as compensation expense over the vesting term of the award.

The Company granted 115,073 restricted stock units during the six months ended March 31, 2023.

The weighted average fair value of such restricted stock units was $ 59.69 per share for the six months ended March 31, 2023.

The Company granted 125,673 restricted stock units during the nine months ended June 30, 2023.

The weighted average fair value of such restricted stock units was $ 58.67 per share for the nine months ended June 30, 2023.

Restricted stock units represent the right to receive shares of common stock of the Company (or the equivalent value in cash or a combination of cash and shares of common stock of the Company, as determined by the Company) at the end of a specified time period.

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The fair value of restricted stock units on the date of award is recorded as compensation expense over the vesting period.

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Note 2 – Asset Acquisitions and Divestitures

On March 22, 2023, the Company entered into a purchase and sale agreement to acquire certain upstream assets located in Potter and Tioga counties, Pennsylvania from SWN Production Company, LLC effective as of January 1, 2023 for total consideration of $ 127.0 million, subject to certain purchase price adjustments at closing.

These assets are contiguous with existing Company-owned upstream assets in Pennsylvania.

The Company made a deposit of $ 12.7 million at the signing of the purchase and sale agreement and intends to finance the remaining acquisition cost using short and/or long-term borrowings.

The transaction is expected to close before the end of June 2023.

On June 30, 2022, the Company completed the sale of Seneca’s California assets, all of which are in the Exploration and Production segment, to Sentinel Peak Resources California LLC for a total sale price of $ 253.5 million, consisting of $ 240.9 million in cash and contingent consideration valued at $ 12.6 million at closing.

On June 1, 2023, the Company completed its acquisition of certain upstream assets located primarily in Tioga County, Pennsylvania from SWN Production Company, LLC ("SWN") for total consideration of $ 124.8 million.

The purchase price, which reflects an effective date of January 1, 2023, was reduced for production revenues less expenses that were retained by SWN from the effective date to the closing date.

As part of the transaction, the Company acquired approximately 34,000 net acres in an area that is contiguous with existing Company-owned upstream assets.

This transaction was accounted for as an asset acquisition, and, as such, the purchase price was allocated to property, plant and equipment.

The following is a summary of the asset acquisition in thousands:

Purchase Price $ 124,178

Transaction Costs 580

Total Consideration $ 124,758

On June 30, 2022, the Company completed the sale of Seneca’s California assets, all of which were in the Exploration and Production segment, to Sentinel Peak Resources California LLC for a total sale price of $ 253.5 million, consisting of $ 240.9 million in cash and contingent consideration valued at $ 12.6 million at closing.

The Company pursued this sale given the strong commodity price environment and the Company's strategic focus in the Appalachian Basin.

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This obligation amounted to $ 50.1 million and was accounted for as a reduction of capitalized costs under the full cost method of accounting.

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Note 3 – Revenue from Contracts with Customers

The following tables provide a disaggregation of the Company's revenues for the quarter and six months ended March 31, 2023 and 2022, presented by type of service from each reportable segment.

Quarter Ended March 31, 2023 (Thousands)

The following tables provide a disaggregation of the Company's revenues for the quarter and nine months ended June 30, 2023 and 2022, presented by type of service from each reportable segment.

Quarter Ended June 30, 2023 (Thousands)

Revenues By Type of Service Exploration and Production Pipeline and Storage Gathering Utility All Other Corporate and Intersegment Eliminations Total Consolidated

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Total Revenues $ 216,581 $ 92,395 $ 58,906 $ 144,617 $ — $ ( 83,795 ) $ 428,704

Six Months Ended March 31, 2023 (Thousands)

Nine Months Ended June 30, 2023 (Thousands)

Revenues By Type of Service Exploration and Production Pipeline and Storage Gathering Utility All Other Corporate and Intersegment Eliminations Total Consolidated

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Total Revenues $ 738,107 $ 285,154 $ 172,300 $ 863,414 $ — $ ( 254,151 ) $ 1,804,824

Quarter Ended March 31, 2022 (Thousands)

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Quarter Ended June 30, 2022 (Thousands)

Revenues By Type of Service Exploration and Production Pipeline and Storage Gathering Utility All Other Corporate and Intersegment Eliminations Total Consolidated

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Total Revenues $ 252,638 $ 95,548 $ 55,931 $ 179,948 $ — $ ( 81,441 ) $ 502,624

Six Months Ended March 31, 2022 (Thousands)

Nine Months Ended June 30, 2022 (Thousands)

Revenues By Type of Service Exploration and Production Pipeline and Storage Gathering Utility All Other Corporate and Intersegment Eliminations Total Consolidated

23 unchanged sentences

and $ 694.3 million thereafter.

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Note 4 – Fair Value Measurements

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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 March 31, 2023 and September 30, 2022.

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 Measures At fair value as of March 31, 2023

Recurring Fair Value Measures At fair value as of June 30, 2023

(Thousands of Dollars) Level 1 Level 2 Level 3 Netting

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Total Net Assets/(Liabilities) $ 68,637 $ 13,784 $ — $ — $ 82,421

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Recurring Fair Value Measures At fair value as of September 30, 2022

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Derivative Financial Instruments

The derivative financial instruments reported in Level 2 at March 31, 2023 and September 30, 2022 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 derivative financial instruments reported in Level 2 at June 30, 2023 and September 30, 2022 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.

Hedging collateral deposits of $ 91.7 million at September 30, 2022, which were associated with the price swap agreements, no cost collars and foreign currency contracts, have been reported in Level 1.

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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 March 31, 2023, 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.

At June 30, 2023, 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 March 31, 2023 also includes the contingent consideration associated with the sale of the Exploration and Production segment's California assets on June 30, 2022, which is discussed at Note 2 – Asset Acquisitions and Divestitures and at Note 5 – Financial Instruments.

Derivative financial instruments reported in Level 2 at June 30, 2023 also includes the contingent consideration associated with the sale of the Exploration and Production segment's California assets on June 30, 2022, which is discussed at Note 2 – Asset Acquisitions and Divestitures and at Note 5 – Financial Instruments.

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.

For the quarters ended March 31, 2023 and March 31, 2022, there were no assets or liabilities measured at fair value and classified as Level 3.

For the quarters ended June 30, 2023 and June 30, 2022, there were no assets or liabilities measured at fair value and classified as Level 3.

Note 5 – Financial Instruments

Long-Term Debt.

The fair market value of the Company’s debt, as presented in the table below, was determined using a discounted cash flow model, which incorporates the Company’s credit ratings and current market conditions in determining the yield, and subsequently, the fair market value of the debt.

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yield, and subsequently, the fair market value of the debt.

Based on these criteria, the fair market value of long-term debt, including current portion, was as follows (in thousands):

March 31, 2023 September 30, 2022

June 30, 2023 September 30, 2022

Amount Fair Value Carrying

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The components of the Company's Other Investments are as follows (in thousands):

At March 31, 2023 At September 30, 2022

At June 30, 2023 At September 30, 2022

Life Insurance Contracts $ 42,411 $ 42,171

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Changes in the fair value of this contingent consideration are marked-to-market each reporting period, with changes in fair value recognized in Other Income (Deductions) on the Consolidated Statement of Income.

The fair value of this contingent consideration was estimated to be $ 5.9 million and $ 8.2 million at March 31, 2023 and September 30, 2022, respectively.

A $ 2.5 million mark-to-market adjustment was recorded during the quarter ended March 31, 2023.

A $ 2.3 million mark-to-market adjustment was recorded during the six months ended March 31, 2023.

The Company has presented its net derivative assets and liabilities as “Fair Value of Derivative Financial Instruments” on its Consolidated Balance Sheets at March 31, 2023 and September 30, 2022.

The fair value of this contingent consideration was estimated to be $ 4.5 million and $ 8.2 million at June 30, 2023 and September 30, 2022, respectively.

A $ 1.4 million mark-to-market adjustment to reduce the fair value of the contingent consideration was recorded during the quarter ended June 30, 2023.

A $ 3.7 million mark-to-market adjustment to reduce the fair value of the contingent consideration was recorded during the nine months ended June 30, 2023.

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The Company has presented its net derivative assets and liabilities as “Fair Value of Derivative Financial Instruments” on its Consolidated Balance Sheets at June 30, 2023 and September 30, 2022.

Cash Flow Hedges

For derivative financial instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative is reported as a component of other comprehensive income (loss) and reclassified into earnings in the period or periods during which the hedged transaction affects earnings.

As of March 31, 2023, the Company had 462.9 Bcf of natural gas commodity derivative contracts (swaps and no cost collars) outstanding.

As of March 31, 2023, the Company was hedging a total of $ 51.0 million of forecasted transportation costs denominated in Canadian dollars with foreign currency forward contracts.

As of March 31, 2023, the Company had $ 1.3 million of net hedging losses after taxes included in the accumulated other comprehensive income (loss) balance.

As of June 30, 2023, the Company had 457.7 Bcf of natural gas commodity derivative contracts (swaps and no cost collars) outstanding.

As of June 30, 2023, the Company was hedging a total of $ 53.4 million of forecasted transportation costs denominated in Canadian dollars with foreign currency forward contracts.

As of June 30, 2023, the Company had $ 4.2 million of net hedging gains after taxes included in the accumulated other comprehensive income (loss) balance.

It is expected that $ 21.6 million of unrealized gains after taxes will be reclassified into the Consolidated Statement of Income within the next 12 months as the underlying hedged transactions are recorded in earnings.

The Effect of Derivative Financial Instruments on the Statement of Financial Performance for the

Three Months Ended March 31, 2023 and 2022 (Thousands of Dollars)

Three Months Ended June 30, 2023 and 2022 (Thousands of Dollars)

Derivatives in Cash Flow Hedging Relationships Amount of Derivative Gain or (Loss) Recognized in Other Comprehensive Income (Loss) on

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Three Months Ended

March 31, Location of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income Amount of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income for the

June 30, Location of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income Amount of Derivative Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) on the Consolidated Balance Sheet into the Consolidated Statement of Income for the

Three Months Ended

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The Effect of Derivative Financial Instruments on the Statement of Financial Performance for the

Six Months Ended March 31, 2023 and 2022 (Thousands of Dollars)

Nine Months Ended June 30, 2023 and 2022 (Thousands of Dollars)

Derivatives in Cash Flow Hedging Relationships Amount of Derivative Gain or

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Comprehensive Income (Loss)

Six Months Ended

Nine Months Ended

(Loss) Reclassified from

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Income for the

Six Months Ended

Nine Months Ended

2023 2022 2023 2022

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Total $ 673,381 $ ( 678,558 ) $ ( 120,590 ) $ ( 591,180 )

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The Company may be exposed to credit risk on any of the derivative financial instruments that are in a gain position.

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The majority of the Company’s counterparties are financial institutions and energy traders.

The Company has over the-counter swap positions, no cost collars and applicable foreign currency forward contracts with sixteen counterparties of which eight are in a net gain position.

On average, the Company had $ 4.6 million of credit exposure per counterparty in a gain position at March 31, 2023.

The maximum credit exposure per counterparty in a gain position at March 31, 2023 was $ 11.1 million.

As of March 31, 2023, no collateral was received from the counterparties by the Company.

The Company has over-the-counter swap positions, no cost collars and applicable foreign currency forward contracts with eighteen counterparties of which nine are in a net gain position.

On average, the Company had $ 4.6 million of credit exposure per counterparty in a gain position at June 30, 2023.

The maximum credit exposure per counterparty in a gain position at June 30, 2023 was $ 16.1 million.

As of June 30, 2023, no collateral was received from the counterparties by the Company.

The Company's gain position on such derivative financial instruments had not exceeded the established thresholds at which the counterparties would be required to post collateral, nor had the counterparties' credit ratings declined to levels at which the counterparties were required to post collateral.

As of March 31, 2023, fourteen of the sixteen counterparties to the Company’s outstanding derivative financial contracts (specifically the over-the-counter swaps, over-the-counter no cost collars and applicable foreign currency forward contracts) had a common credit-risk related contingency feature.

As of June 30, 2023, sixteen of the eighteen counterparties to the Company’s outstanding derivative financial contracts (specifically the over-the-counter swaps, over-the-counter no cost collars and applicable foreign currency forward contracts) had a common credit-risk related contingency feature.

In the event the Company’s credit rating increases or falls below a certain threshold (applicable debt ratings), the available credit extended to the Company would either increase or decrease.

A decline in the Company’s credit rating, in and of itself, would not cause the Company to be required to post or increase the level of its hedging collateral deposits (in the form of cash deposits, letters of credit or treasury debt instruments).

If the Company’s outstanding derivative financial contracts with a credit-risk contingency feature were in a liability position (or

if the liability were larger) and/or the Company’s credit rating declined, then hedging collateral deposits or an increase to such deposits could be required.

At March 31, 2023, the fair market value of the derivative financial instrument liabilities with a credit-risk related contingency feature was $ 7.1 million according to the Company’s internal model (discussed in Note 4 – Fair Value Measurements), and no hedging collateral deposits were required to be posted by the Company at March 31, 2023.

If the Company’s outstanding derivative financial contracts with a credit-risk contingency feature were in a liability position (or if the liability were larger) and/or the Company’s credit rating declined, then hedging collateral deposits or an increase to such deposits could be required.

At June 30, 2023, the fair market value of the derivative financial instrument liabilities with a credit-risk related contingency feature was $ 7.4 million according to the Company’s internal model (discussed in Note 4 – Fair Value Measurements), and no hedging collateral deposits were required to be posted by the Company at June 30, 2023.

Depending on the movement of commodity prices in the future, it is possible that these liability positions could swing into asset positions, at which point the Company would be exposed to credit risk on its derivative financial instruments.

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Note 6 – Income Taxes

The effective tax rates for the quarters ended March 31, 2023 and March 31, 2022 were 26.2 % and 25.6 %, respectively.

The effective tax rates for the six months ended March 31, 2023 and March 31, 2022 were 25.7 % and 25.5 % , respectively.

During the quarter and six months ended March 31, 2022, the Company was able to utilize the Enhanced Oil Recovery tax credit, which was not available during the quarter and six months ended March 31, 2023 due to the sale of its California properties.

The effective tax rates for the quarters ended June 30, 2023 and June 30, 2022 were 26.2 % and 23.3 %, respectively.

The effective tax rates for the nine months ended June 30, 2023 and June 30, 2022 were 25.8 % and 24.9 % , respectively.

During the quarter and nine months ended June 30, 2022, the Company was able to utilize the Enhanced Oil Recovery tax credit, which was not available during the quarter and nine months ended June 30, 2023 due to the sale of its California properties.

On April 14, 2023, the IRS issued guidance that provides a safe harbor method of accounting that taxpayers may use to determine whether expenses to repair, maintain, replace, or improve natural gas transmission and distribution property must be capitalized.

The Company is currently analyzing this guidance to determine the potential impact on the financial statements.

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Note 7 – Capitalization

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(Thousands, except per share amounts)

Balance at January 1, 2023 91,787 $ 91,787 $ 1,025,639 $ 1,713,176 $ ( 293,746 )

Balance at April 1, 2023 91,795 $ 91,795 $ 1,031,341 $ 1,810,454 $ ( 54,864 )

Net Income Available for Common Stock 92,620

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Common Stock Issued Under Stock and Benefit Plans 9 9 502

Balance at March 31, 2023 91,795 $ 91,795 $ 1,031,341 $ 1,810,454 $ ( 54,864 )

Balance at June 30, 2023 91,804 $ 91,804 $ 1,035,852 $ 1,857,630 $ ( 49,384 )

Balance at October 1, 2022 91,478 $ 91,478 $ 1,027,066 $ 1,587,085 $ ( 625,733 )

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Common Stock Issued (Repurchased) Under Stock and Benefit Plans 326 326 ( 5,541 )

Balance at March 31, 2023 91,795 $ 91,795 $ 1,031,341 $ 1,810,454 $ ( 54,864 )

Balance at January 1, 2022 91,437 $ 91,437 $ 1,013,821 $ 1,281,963 $ ( 277,026 )

Balance at June 30, 2023 91,804 $ 91,804 $ 1,035,852 $ 1,857,630 $ ( 49,384 )

Balance at April 1, 2022 91,449 $ 91,449 $ 1,018,784 $ 1,407,683 $ ( 654,254 )

Net Income Available for Common Stock 108,158

Dividends Declared on Common Stock ($ 0.475 Per Share) ( 43,446 )

Other Comprehensive Loss, Net of Tax ( 377,228 )

Other Comprehensive Income, Net of Tax 71,386

Share-Based Payment Expense (1)

Common Stock Issued Under Stock and Benefit Plans 17 17 76

Balance at March 31, 2022 91,449 $ 91,449 $ 1,018,784 $ 1,407,683 $ ( 654,254 )

Balance at June 30, 2022 91,466 $ 91,466 $ 1,022,954 $ 1,472,395 $ ( 582,868 )

Balance at October 1, 2021 91,182 $ 91,182 $ 1,017,446 $ 1,191,175 $ ( 513,597 )

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284 284 ( 8,318 )

Balance at March 31, 2022 91,449 $ 91,449 $ 1,018,784 $ 1,407,683 $ ( 654,254 )

Balance at June 30, 2022 91,466 $ 91,466 $ 1,022,954 $ 1,472,395 $ ( 582,868 )

(1) Paid in Capital includes compensation costs associated with performance shares and/or restricted stock awards.

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Common Stock.

During the six months ended March 31, 2023, the Company issued 12,055 original issue shares of common stock as a result of SARs exercises, 113,531 original issue shares of common stock for restricted stock units that vested and 278,687 original issue shares of common stock for performance shares that vested.

The Company also issued 14,680 original issue shares of common stock to the non-employee directors of the Company who receive compensation under the Company’s 2009 Non-Employee Director Equity Compensation Plan, including the reinvestment of dividends for certain non-employee directors who elected to defer their shares pursuant to the dividend reinvestment feature of the Company's Deferred Compensation Plan for Directors and Officers (the "DCP") during the six months ended March 31, 2023.

In addition, the Company issued 824 original issue shares of common stock to officers of the Company who elected to defer their shares pursuant to the dividend reinvestment feature of the Company's DCP Plan during the six months ended March 31, 2023.

Holders of stock-based compensation awards will often tender shares of common stock to the Company for payment of applicable withholding taxes.

During the six months ended March 31, 2023, 102,761 shares of common stock were tendered to the Company for such purposes.

During the nine months ended June 30, 2023, the Company issued 12,055 original issue shares of common stock as a result of SARs exercises, 113,566 original issue shares of common stock for restricted stock units that vested and 278,687 original issue shares of common stock for performance shares that vested.

The Company also issued 22,685 original issue shares of common stock to the non-employee directors of the Company who receive compensation under the Company’s 2009 Non-Employee Director Equity Compensation Plan, including the reinvestment of dividends for certain non-employee directors who elected to defer their shares pursuant to the dividend reinvestment feature of the Company's Deferred Compensation Plan for Directors and Officers (the "DCP") during the nine months ended June 30, 2023.

In addition, the Company issued 1,735 original issue shares of common stock to officers of the Company who elected to defer their shares pursuant to the dividend reinvestment feature of the Company's DCP Plan during the nine months ended June 30, 2023.

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of stock-based compensation awards will often tender shares of common stock to the Company for payment of applicable withholding taxes.

During the nine months ended June 30, 2023, 102,796 shares of common stock were tendered to the Company for such purposes.

The Company considers all shares tendered as cancelled shares restored to the status of authorized but unissued shares, in accordance with New Jersey law.

Short-Term Borrowings.

On June 30, 2022, the Company entered into a new 364-Day Credit Agreement (the "364-Day Credit Agreement") with a syndicate of five banks, all of which are also lenders under the Credit Agreement.

The 364-Day Credit Agreement provides an additional $ 250.0 million unsecured committed delayed draw term loan credit facility with a maturity date of June 29, 2023.

On June 30, 2022, the Company entered into a 364-Day Credit Agreement (the "364-Day Credit Agreement") with a syndicate of five banks, all of which are also lenders under the Credit Agreement (as amended from time to time, the "Credit Agreement").

The 364-Day Credit Agreement provided an additional $ 250.0 million unsecured committed delayed draw term loan credit facility with a maturity date of June 29, 2023.

The Company elected to draw $ 250.0 million under the facility on October 27, 2022.

The Company used the proceeds for general corporate purposes, which included using $ 150.0 million for the November 2022 redemption of a portion of the Company's outstanding long-term debt with a maturity date in March 2023.

All indebtedness under the 364-Day Credit Agreement was repaid in May 2023 prior to its June 29, 2023 maturity date.

Current Portion of Long-Term Debt.

None of the Company's long-term debt as of March 31, 2023 had a maturity date within the following twelve-month period.

None of the Company's long-term debt as of June 30, 2023 had a maturity date within the following twelve-month period.

The Current Portion of Long-Term Debt at September 30, 2022 consisted of $ 500.0 million of 3.75 % notes and $ 49.0 million of 7.395 % notes.

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In March 2023, the Company redeemed the remaining $ 350.0 million of the 3.75 % notes as well as the $ 49.0 million of 7.395 % notes.

Long-Term Debt.

On May 18, 2023, the Company issued $ 300.0 million of 5.50 % notes due October 1, 2026.

After deducting underwriting discounts, commissions and other debt issuance costs, the net proceeds to the Company amounted to $ 297.5 million.

The holders of the notes may require the Company to repurchase their notes at a price equal to 101 % of the principal amount in the event of both a change in control and a ratings downgrade to a rating below investment grade.

Additionally, the interest rate payable on the notes will be subject to adjustment from time to time, with a maximum adjustment of 2.00 %, such that the coupon will not exceed 7.50 %, if certain change of control events involving a material subsidiary result in a downgrade of the credit rating assigned to the notes to a rating below investment grade.

A downgrade with a resulting increase to the coupon does not preclude the coupon from returning to its original rate if the Company's credit rating is subsequently upgraded.

The proceeds of this debt issuance were used for general corporate purposes, including to repay all indebtedness under the $ 250.0 million unsecured committed delayed draw term loan under the 364-Day Credit Agreement, as discussed above.

Note 8 – Commitments and Contingencies

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It is the Company’s policy to accrue estimated environmental clean-up costs (investigation and remediation) when such amounts can reasonably be estimated and it is probable that the Company will be required to incur such costs.

At March 31, 2023, the Company has estimated its remaining clean-up costs related to former manufactured gas plant sites will be approximately $ 3.8 million.

The Company's liability for such clean-up costs has been recorded in Other Liabilities on the Consolidated Balance Sheet at March 31, 2023.

The Company expects to recover its environmental clean-up costs through rate recovery over a period of less than one year and is currently not aware of any material additional exposure to environmental liabilities.

At June 30, 2023, the Company has estimated its remaining clean-up costs related to former manufactured gas plant sites will be approximately $ 3.6 million.

The Company's liability for such clean-up costs has been recorded in Other Liabilities on the Consolidated Balance Sheet at June 30, 2023.

The Company has recovered its environmental clean-up costs through rate recovery and is currently not aware of any material additional exposure to environmental liabilities.

However, changes in environmental laws and regulations, new information or other factors could have an adverse financial impact on the Company.

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The Company remains committed to the project and, on June 29, 2022, received an extension of time from FERC, until December 31, 2024, to construct the project.

As of March 31, 2023, the Company has spent approximately $ 55.9 million on the project, all of which is recorded on the balance sheet.

As of June 30, 2023, the Company has spent approximately $ 55.8 million on the project, all of which is recorded on the balance sheet.

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The Company is involved in other litigation and regulatory matters arising in the normal course of business.

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There have not been any changes in the basis of segmentation nor in the basis of measuring segment profit or loss from those used in the Company’s 2022 Form 10-K.

A listing of segment assets at March 31, 2023 and September 30, 2022 is shown in the tables below.

Quarter Ended March 31, 2023 (Thousands)

A listing of segment assets at June 30, 2023 and September 30, 2022 is shown in the tables below.

Quarter Ended June 30, 2023 (Thousands)

Exploration and Production Pipeline and Storage Gathering Utility Total Reportable Segments All Other Corporate and Intersegment Eliminations Total Consolidated

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$ 43,329 $ 23,813 $ 24,135 $ 37 $ 91,314 $( 81 ) $ 1,387 $ 92,620

Six Months Ended March 31, 2023 (Thousands)

Nine Months Ended June 30, 2023 (Thousands)

Exploration and Production Pipeline and Storage Gathering Utility Total Reportable Segments All Other Corporate and Intersegment Eliminations Total Consolidated

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Segment Assets:

At March 31, 2023 $ 2,489,665 $ 2,357,852 $ 882,405 $ 2,363,918 $ 8,093,840 $ 2,105 $( 128,703 ) $ 7,967,242

At June 30, 2023 $ 2,683,959 $ 2,383,201 $ 908,028 $ 2,294,656 $ 8,269,844 $ 3,805 $( 167,017 ) $ 8,106,632

At September 30, 2022 $ 2,507,541 $ 2,394,697 $ 878,796 $ 2,299,473 $ 8,080,507 $ 2,036 $( 186,281 ) $ 7,896,262

Quarter Ended March 31, 2022 (Thousands)

Quarter Ended June 30, 2022 (Thousands)

Exploration and Production Pipeline and Storage Gathering Utility Total Reportable Segments All Other Corporate and Intersegment Eliminations Total Consolidated

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Net Income (Loss) $ 56,497 $ 26,599 $ 24,658 $ 4,622 $ 112,376 $ — $( 4,218 ) $ 108,158

Six Months Ended March 31, 2022 (Thousands)

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Nine Months Ended June 30, 2022 (Thousands)

Exploration and Production Pipeline and Storage Gathering Utility Total Reportable Segments All Other Corporate and Intersegment Eliminations Total Consolidated

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Retirement Plan Other Post-Retirement Benefits

Three Months Ended March 31, 2023 2022 2023 2022

Three Months Ended June 30, 2023 2022 2023 2022

Service Cost $ 1,297 $ 2,190 $ 147 $ 332

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Retirement Plan Other Post-Retirement Benefits

Six Months Ended March 31, 2023 2022 2023 2022

Nine Months Ended June 30, 2023 2022 2023 2022

Service Cost $ 3,891 $ 6,568 $ 440 $ 996

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Employer Contributions.

The Company did not make any contributions to its tax-qualified, noncontributory defined benefit retirement plan (Retirement Plan) or its VEBA trusts for its other post-retirement benefits during the six months ended March 31, 2023, and does not anticipate making any such contributions during the remainder of fiscal 2023.

The Company did not make any contributions to its tax-qualified, noncontributory defined benefit retirement plan (Retirement Plan) or its VEBA trusts for its other post-retirement benefits during the nine months ended June 30, 2023, and does not anticipate making any such contributions during the remainder of fiscal 2023.

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Note 11 – Regulatory Matters

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On September 16, 2022, the NYPSC issued an order approving the filing.

The surcredit will remain in effect until modified by the NYPSC in another proceeding, or until

December 31, 2024, whichever is earlier.

The surcredit will remain in effect until modified by the NYPSC in another proceeding, or until December 31, 2024, whichever is earlier.

With the implementation of this surcredit, Distribution Corporation will no longer be funding the Retirement Plan or its VEBA trusts in its New York jurisdiction.

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On December 9, 2022, the Company filed a petition with the NYPSC to effectuate a system improvement tracker through which qualified pipeline replacement costs through September 30, 2024 would be tracked and recovered, and to recover certain deferred costs associated with the existing system modernization tracker, effective April 1, 2023.

The NYPSC approved the petition via order dated March 17, 2023 contingent on the Company not filing a base rate case that would result in new rates becoming effective prior to October 1, 2024.

The NYPSC approved the petition by order dated March 17, 2023 contingent on the Company not filing a base rate case that would result in new rates becoming effective prior to October 1, 2024.

On January 19, 2023, the NYPSC issued an order in its Effects of COVID-19 on Utility Service (20-M-0266) and Energy Affordability for Low Income Utility Customers (14-M-0565) proceedings whereby a Phase 2 Utility Arrears Relief Program was authorized.

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Utilities proposed various offsets to Phase 2 program costs, and Distribution Corporation has proposed certain offsets as part of an uncollectible expense reconciliation proposal.

On February 17, 2023, Distribution Corporation made a filing with the NYPSC seeking approval of its uncollectible expense reconciliation mechanism and a determination is pending.

On February 17, 2023, Distribution Corporation made a filing with the NYPSC seeking approval of its uncollectible expense reconciliation mechanism.

On July 19, 2023, the NYPSC noticed Distribution Corporation’s filing in the New York State Register indicating that public comment will be received on the filing until sixty days after publication or until September 18, 2023.

Application of the proposed offsets and collection periods will be determined when the NYPSC rules on the uncollectible expense reconciliation filing.

Pennsylvania Jurisdiction

Distribution Corporation’s current delivery rates in its Pennsylvania jurisdiction were approved by the PaPUC on November 30, 2006 as part of a settlement agreement that became effective January 1, 2007.

Distribution Corporation’s delivery rates effective through July 31, 2023 in its Pennsylvania jurisdiction were approved by the PaPUC on November 30, 2006 as part of a settlement agreement that became effective January 1, 2007.

On October 28, 2022, Distribution Corporation made a filing with the PaPUC seeking an increase in its annual base rate operating revenues of $ 28.1 million with a proposed effective date of December 27, 2022.

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On April 13, 2023, Distribution Corporation filed a joint petition with the PaPUC seeking approval of the settlement on behalf of all active parties to the proceeding.

The joint petition is currently pending before the PaPUC.

On June 15, 2023, the PaPUC issued an order granting the joint petition and adopting the settlement in full, without modification or correction.

Effective October 1, 2021, pursuant to a tariff supplement filed with the PaPUC, Distribution Corporation reduced base rates by $ 7.7 million in order to stop collecting OPEB expenses from customers.

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All matters with respect to this tariff supplement were finalized on February 24, 2022 with the PaPUC’s approval of an Administrative Law Judge’s Recommended Decision.

Concurrent with that decision, the Company discontinued regulatory accounting for OPEB expenses and recorded an $ 18.5 million adjustment during the quarter ended March 31, 2022 to reduce its regulatory liability for previously deferred OPEB income amounts through September 30, 2021 and to increase Other Income (Deductions) on the consolidated financial statements by a like amount.

Concurrent with

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that decision, the Company discontinued regulatory accounting for OPEB expenses and recorded an $ 18.5 million adjustment during the quarter ended March 31, 2022 to reduce its regulatory liability for previously deferred OPEB income amounts through September 30, 2021 and to increase Other Income (Deductions) on the consolidated financial statements by a like amount.

The Company also increased customer refunds of overcollected OPEB expenses from $ 50.0 million to $ 54.0 million.

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FERC Jurisdiction

Supply Corporation’s 2020 rate settlement provides that no party may make a rate filing for new rates to be effective before February 1, 2024, except that Supply Corporation may file an NGA general Section 4 rate case to change rates if the

corporate federal income tax rate is increased.

If no case has been filed, Supply Corporation must file for rates to be effective February 1, 2025.

Supply Corporation filed a NGA Section 4 rate case at FERC on July 31, 2023 proposing rate increases to be effective February 1, 2024.

The proposed rates reflect an annual cost of service of $ 385.4 million, a rate base of $ 1.32 billion an d a proposed cost of equity of 15.12 %.

If the proposed rate increases finally approved at the end of the proceeding exceed the rates that were in effect at July 31, 2023, but are less than rates put into effect subject to refund on February 1, 2024, Supply Corporation would be required to refund the difference between the rates collected subject to refund and the final approved rates, with interest at the FERC-approved rate.

If the rates approved at the end of the proceeding are lower than the rates in effect at July 31, 2023, such lower rates will become effective prospectively from the effective date provided by the applicable FERC order, and refunds with interest will be limited to the difference between the rates collected subject to refund and the rates in effect at July 31, 2023.

Empire’s 2019 rate settlement provides that Empire must make a rate case filing no later than May 1, 2025.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements