Company: SOJE
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000092122-25-000018
Chunk: 865

Company: SOUTHERN CO
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7A
Chunk 865
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 at December 31, 2022, assets (liabilities), net$(11)$(37)Contracts realized or settled207 33 Current period changes(b)(500)(45)Contracts outstanding at December 31, 2023, assets (liabilities), net(304)(49)Contracts realized or settled211 7 Current period changes(b)54 52 Contracts outstanding at December 31, 2024, assets (liabilities), net$(39)$10 

(a)Excludes cash collateral held on deposit in broker margin accounts of $17 million, $62 million, and $41 million at December 31, 2024, 2023, and 2022, respectively, and immaterial premium and intrinsic value associated with weather derivatives for all periods presented.

(b)The changes in fair value of energy-related derivative contracts are substantially attributable to both the volume and the price of natural gas. Current period changes also include the changes in fair value of new contracts entered into during the period, if any.

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    Table of Contents                                Index to Financial Statements        COMBINED MANAGEMENT'S DISCUSSION AND ANALYSIS

The net hedge volumes of energy-related derivative contracts for natural gas purchased at December 31, 2024 and 2023 for Southern Company and Southern Company Gas were as follows:

Southern CompanySouthern Company GasmmBtu Volume (in millions)At December 31, 2024:Commodity – Natural gas swaps255 — Commodity – Natural gas options176 83 Total hedge volume431 83 At December 31, 2023:Commodity – Natural gas swaps109 — Commodity – Natural gas options339 102 Total hedge volume448 102 

Southern Company Gas' derivative contracts are comprised of both long and short natural gas positions. A long position is a contract to purchase natural gas, and a short position is a contract to sell natural gas. The volumes presented above for Southern Company Gas represent the net of long natural gas positions of 90 million mmBtu and short natural gas positions of 7 million mmBtu at December 31, 2024 and the net of long natural gas positions of 112 million mmBtu and short natural gas positions of 10 million mmBtu at December 31, 2023.

For the Southern Company system, the weighted average swap contract cost per mmBtu was approximately $0.15 per mmBtu below market prices