Company: SOJE
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000092122-25-000084
Chunk: 339

Company: SOUTHERN CO
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 339
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 increase of $10 million in the flowback of excess state deferred income taxes and lower pre-tax earnings.

See Note (G) to the Condensed Financial Statements herein for additional information.

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    Table of Contents                                Index to Financial StatementsMANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONAND RESULTS OF OPERATIONS (Continued)

Segment Information

Operating revenues, operating expenses, and net income for each segment are provided in the table below. See Note (L) to the Condensed Financial Statements under "Southern Company Gas" herein for additional information.

 20252024 Operating RevenuesOperating ExpensesNet Income (Loss) Operating RevenuesOperating ExpensesNet Income (Loss)(in millions)Third QuarterGas distribution operations$668 $589 $12 $616 $533 $21 Gas pipeline investments8 2 20 8 2 24 Gas marketing services58 52 3 53 55 (2)All other1 7 (10)6 7 (5)Intercompany eliminations(1)4 — (1)2 — Consolidated$734 $654 $25 $682 $599 $38 Year-to-DateGas distribution operations$3,122 $2,379 $417 $2,828 $2,104 $403 Gas pipeline investments24 7 62 24 7 77 Gas marketing services403 293 77 358 260 72 All other11 16 (7)19 18 3 Intercompany eliminations(8)3 — (9)1 — Consolidated$3,552 $2,698 $549 $3,220 $2,390 $555 

Gas Distribution Operations

The gas distribution operations segment is the largest component of Southern Company Gas' business and is subject to regulation and oversight by regulatory agencies in each of the states it serves. These agencies approve natural gas rates designed to provide Southern Company Gas with the opportunity to generate revenues to recover the cost of natural gas delivered to its customers and its fixed and variable costs, including depreciation, interest expense, operations and maintenance, taxes, and overhead costs, and to earn a reasonable return on its investments.

With the exception of Atlanta Gas Light, Southern Company Gas' second largest utility that operates in a deregulated natural gas market and has a straight-fixed