Company: SOJE
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000092122-25-000076
Chunk: 394

Company: SOUTHERN CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 2
Chunk 394
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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)Second QuarterGas distribution operations$885 $707 $91 $749 $582 $80 Gas pipeline investments8 2 15 8 2 22 Gas marketing services83 71 8 70 57 9 All other5 7 (8)7 9 (3)Intercompany eliminations(2)2 — (3)1 — Consolidated$979 $789 $106 $831 $651 $108 Year-to-DateGas distribution operations$2,454 $1,789 $406 $2,212 $1,571 $382 Gas pipeline investments16 5 41 16 5 52 Gas marketing services345 241 74 305 205 74 All other9 9 3 13 11 9 Intercompany eliminations(6)1 — (8)(1)— Consolidated$2,818 $2,045 $524 $2,538 $1,791 $517 

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-variable rate design that minimizes the variability of its revenues based on consumption, the earnings of the natural gas distribution utilities can be affected by customer consumption patterns that are a function of weather conditions, price levels for