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Other Investments
3 Months Ended
Dec. 31, 2019
Equity Method Investments and Joint Ventures [Abstract]  
Other Investments
Other Investments

In October 2015, Midstream, acquired an initial 1% equity interest in the Mountain Valley Pipeline, LLC.
The LLC was established to construct and operate a natural gas pipeline originating in northern West Virginia and extending through south central Virginia. Once completed, the pipeline will have the capacity to transport approximately 2 million decatherms of natural gas per day.

Due to ongoing delays primarily attributable to the actions of the Fourth Circuit and FERC, which have suspended previously approved permits allowing for water crossings and access through national forest lands, completing the pipeline has been delayed. Current activity on the pipeline is limited to maintenance and restoration activities. The LLC's managing partner believes they have submitted all of the information required for the suspended permits to be approved and is awaiting approval. As a result, the projected cost of the MVP project has grown to between $5.3 and $5.5 billion with a projected in-service date in late calendar 2020. Midstream's estimated total cash contribution is between $53 and $55 million. The Company is utilizing the equity method to account for the transactions and activity of the investment in MVP and is participating in the earnings in proportion to its level of investment.

In April 2018, the LLC announced the Southgate project, which is an approximately 74 mile pipeline extending from the MVP mainline in Virginia to delivery points in North Carolina. Midstream is a less than 1% investor in the project, which is being accounted for under the cost method. Total project cost is estimated to be nearly $500 million, of which Midstream's portion is estimated to be approximately $2.5 million. The Southgate in-service date is currently targeted for calendar year 2021, subject to any further delays in the completion of the MVP mainline.

Funding for Midstream's investments in the LLC for both the MVP and Southgate projects are being provided through two variable rate unsecured promissory notes under a non-revolving credit agreement, maturing in December 2022, and two additional notes issued in June 2019. See Note 7 for a schedule of debt instruments.

The investments in the LLC are included in the condensed consolidated financial statements as follows:

Balance Sheet location of Other Investments:
December 31, 2019
 
September 30, 2019
Other Assets:
 
 
 
     MVP
$
49,055,748

 
$
47,055,426

     Southgate
320,033

 
320,033

     Investment in unconsolidated affiliates
$
49,375,781

 
$
47,375,459

Current Liabilities:
 
 
 
     MVP
$
891,903

 
$
4,958,260

     Southgate

 
66,564

     Capital contributions payable
$
891,903

 
$
5,024,824


 
Three Months Ended
Income Statement location of Other Investments:
December 31, 2019
 
December 31, 2018
    Equity in earnings of unconsolidated affiliate
$
1,094,086

 
$
563,049



 
December 31, 2019
 
September 30, 2019
Undistributed earnings, net of income taxes, of MVP in retained earnings
$
4,079,644

 
$
3,267,176


The change in the investment in unconsolidated affiliate is provided below:
 
Three Months Ended
 
December 31, 2019
 
December 31, 2018
Cash investment
$
5,039,157

 
$
10,142,766

Change in accrued capital calls
(4,132,921
)
 
(6,395,680
)
Equity in earnings of unconsolidated affiliates
1,094,086

 
563,049

Change in investment in unconsolidated affiliates
$
2,000,322

 
$
4,310,135



Summary of unaudited financial statements of Mountain Valley Pipeline are presented below. Southgate financial statements, which are accounted for under the cost method, are not included:
 
Income Statements
 
Three Months Ended
 
December 31, 2019
 
December 31, 2018
AFUDC
$
110,025,474

 
$
54,184,516

Net Other Income
$
734,182

 
$
2,562,792

Net Income
$
110,759,656

 
$
56,747,308


 
Balance Sheets
 
December 31, 2019
 
September 30, 2019
Assets:
 
 
 
Current Assets
$
243,577,729

 
$
485,323,892

Construction Work in Progress
4,941,631,920

 
4,675,267,389

Other Assets
9,923,000

 
13,190,816

Total Assets
$
5,195,132,649

 
$
5,173,782,097

 
 
 
 
Liabilities and Equity:
 
 
 
Current Liabilities
$
223,678,580

 
$
466,776,233

Capital
4,971,454,069

 
4,707,005,864

Total Liabilities and Equity
$
5,195,132,649

 
$
5,173,782,097