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REPORTING SEGMENT AND OTHER OPERATIONS DATA
 9 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
REPORTING SEGMENT AND OTHER OPERATIONS DATA
14. REPORTING SEGMENT AND OTHER OPERATIONS DATA

The Company organizes its businesses based on a combination of factors, including its products and its regulatory environment. As a result, the Company manages its businesses through the following reporting segments and other operations: the Natural Gas Distribution segment consists of regulated energy and off-system, capacity and storage management operations; the Clean Energy Ventures segment consists of capital investments in clean energy projects; the Energy Services segment consists of unregulated wholesale and retail energy operations; the Storage and Transportation segment consists of the Company’s investments in natural gas transportation and storage facilities; the Home Services and Other operations consist of heating, cooling and water appliance sales, installations and services, other investments and general corporate activities.

Information related to the Company's various reporting segments and other operations is detailed below:
Three Months EndedNine Months Ended
June 30,June 30,
(Thousands)2022202120222021
Operating revenues
Natural Gas Distribution
External customers$199,357 $127,626 $937,266 $633,522 
Intercompany338 — 1,013 — 
Clean Energy Ventures
External customers13,795 13,381 35,805 26,227 
Energy Services
External customers (1)
309,236 202,516 1,086,093 889,631 
Intercompany(1,421)(922)3,611 4,009 
Storage and Transportation
External customers15,779 10,999 40,168 36,703 
Intercompany611 650 1,707 1,976 
Subtotal537,695 354,250 2,105,663 1,592,068 
Home Services and Other
External customers14,168 13,071 41,161 38,002 
Intercompany52 241 232 660 
Eliminations420 31 (6,563)(6,645)
Total$552,335 $367,593 $2,140,493 $1,624,085 
Depreciation and amortization
Natural Gas Distribution$23,951 $19,894 $70,188 $58,538 
Clean Energy Ventures5,358 5,200 15,902 15,318 
Energy Services (2)
34 28 94 83 
Storage and Transportation3,323 2,443 8,027 7,447 
Subtotal32,666 27,565 94,211 81,386 
Home Services and Other207 260 614 747 
Eliminations(1)(58)(125)(156)
Total$32,872 $27,767 $94,700 $81,977 
Interest income (3)
Natural Gas Distribution$250 $90 $634 $248 
Clean Energy Ventures— — — 240 
Energy Services— 11 — 11 
Storage and Transportation501 350 1,259 1,895 
Subtotal751 451 1,893 2,394 
Home Services and Other225 129 527 388 
Eliminations(292)(233)(747)(709)
Total$684 $347 $1,673 $2,073 
(1)Includes sales to Canada for the Energy Services segment, which are immaterial.
(2)The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Unaudited Condensed Consolidated Statements of Operations.
(3)Included in other income, net on the Unaudited Condensed Consolidated Statements of Operations.
Three Months EndedNine Months Ended
June 30,June 30,
(Thousands)2022202120222021
Interest expense, net of capitalized interest
Natural Gas Distribution$11,474 $8,667 $33,233 $26,647 
Clean Energy Ventures5,510 4,998 16,332 15,298 
Energy Services1,115 240 2,585 1,495 
Storage and Transportation3,177 2,937 7,160 10,497 
Subtotal21,276 16,842 59,310 53,937 
Home Services and Other135 1,902 504 4,746 
Total$21,411 $18,744 $59,814 $58,683 
Income tax provision (benefit)
Natural Gas Distribution$1,508 $889 $44,401 $24,878 
Clean Energy Ventures(1,526)(1,448)(5,524)(7,248)
Energy Services2,338 (8,805)22,053 26,445 
Storage and Transportation1,675 (10,393)2,732 (8,874)
Subtotal3,995 (19,757)63,662 35,201 
Home Services and Other180 415 682 474 
Eliminations259 557 (293)2,038 
Total$4,434 $(18,785)$64,051 $37,713 
Equity in earnings (loss) of affiliates
Storage and Transportation$5,274 $(88,615)$7,586 $(82,036)
Eliminations(473)(618)(1,441)(1,718)
Total$4,801 $(89,233)$6,145 $(83,754)
Net financial earnings (loss)
Natural Gas Distribution$2,648 $1,581 $156,511 $131,589 
Clean Energy Ventures(5,098)(4,926)(18,410)(24,072)
Energy Services(5,003)(12,527)42,504 85,501 
Storage and Transportation3,526 2,387 11,113 10,606 
Subtotal(3,927)(13,485)191,718 203,624 
Home Services and Other215 (384)1,113 301 
Eliminations161 (279)(406)(2,812)
Total$(3,551)$(14,148)$192,425 $201,113 
Capital expenditures
Natural Gas Distribution$79,976 $150,642 $205,440 $327,127 
Clean Energy Ventures38,948 10,661 105,504 51,545 
Storage and Transportation20,560 22,479 129,608 50,186 
Subtotal139,484 183,782 440,552 428,858 
Home Services and Other320 244 562 1,055 
Total$139,804 $184,026 $441,114 $429,913 
Investments in (return of capital from) equity investees
Storage and Transportation$(1,479)$208 $(5,479)$690 
Total$(1,479)$208 $(5,479)$690 
The Company's assets for the various reporting segments and business operations are detailed below:
(Thousands)June 30,
2022		September 30,
2021
Assets at end of period:
Natural Gas Distribution$3,959,609 $3,707,461 
Clean Energy Ventures994,762 914,788 
Energy Services370,233 365,423 
Storage and Transportation985,525 862,407 
Subtotal6,310,129 5,850,079 
Home Services and Other139,652 162,134 
Intercompany assets (1)
(287,860)(289,935)
Total$6,161,921 $5,722,278 
(1)Consists of transactions between subsidiaries that are eliminated and reclassified in consolidation.

The Chief Executive Officer, who uses NFE as a measure of profit or loss in measuring the results of the Company's reporting segments and operations, is the chief operating decision maker of the Company. A reconciliation of consolidated NFE to consolidated net income is as follows:
Three Months EndedNine Months Ended
June 30,June 30,
(Thousands)2022202120222021
Net financial (loss) earnings$(3,551)$(14,148)$192,425 $201,113 
Less:
Unrealized (gain) loss on derivative instruments and related transactions(17,891)21,862 (58,060)13,627 
Tax effect4,253 (5,198)13,809 (3,240)
Effects of economic hedging related to natural gas inventory428 2,486 25,160 (12,255)
Tax effect(102)(591)(5,979)2,912 
(Gain on) impairment of equity method investment(4,021)92,000 (4,021)92,000 
Tax effect1,003 (11,934)1,003 (11,934)
NFE tax adjustment(274)(942)113 980 
Net income (loss)$13,053 $(111,831)$220,400 $119,023 

The Company uses derivative instruments as economic hedges of purchases and sales of physical natural gas inventory. For GAAP purposes, these derivatives are recorded at fair value and related changes in fair value are included in reported earnings. Revenues and cost of natural gas related to physical natural gas flow are recognized when the natural gas is delivered to customers. Consequently, there is a mismatch in the timing of earnings recognition between the economic hedges and physical natural gas flows. Timing differences occur in two ways:

•unrealized gains and losses on derivatives are recognized in reported earnings in periods prior to physical natural gas inventory flows; and

•unrealized gains and losses of prior periods are reclassified as realized gains and losses when derivatives are settled in the same period as physical natural gas inventory movements occur.

NFE is a measure of the earnings based on eliminating these timing differences, to effectively match the earnings effects of the economic hedges with the physical sale of natural gas, SRECs and foreign currency contracts. Consequently, to reconcile between net income and NFE, current period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Realized derivative gains and losses are also included in current period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical natural gas flows. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment. These are considered unusual in nature and occur infrequently such that they are not indicative of the Company's performance for its ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE. The Company also calculates a quarterly tax adjustment based on an estimated annual effective tax rate for NFE purposes.