CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited) (excluding footnotes)
EL PASO NATURAL GAS COMPANY, L.L.C.
As of September 30, 2025 and December 31, 2024 and
For the Three and Nine Months Ended September 30, 2025 and 2024
TABLE OF CONTENTS
Consolidated Financial Statements (Unaudited)
Page Number
Consolidated Balance Sheets 2
Consolidated Statements of Income and Comprehensive Income 1
Consolidated Statements of Cash Flows 3
Consolidated Statements of Member's Equity 4
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(In millions, unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2025 | 2024 | 2025 | 2024 | |||||
Revenues | $ | 209 | $ | 206 | $ | 622 | $ | 621 |
Operating Costs and Expenses | ||||||||
Operations and maintenance | 69 | 64 | 190 | 194 | ||||
Depreciation and amortization | 26 | 26 | 79 | 77 | ||||
General and administrative | 14 | 14 | 42 | 40 | ||||
Taxes, other than income taxes | 8 | 8 | 24 | 24 | ||||
Other income, net | - | - | - | (8) | ||||
Total Operating Costs and Expenses | 117 | 112 | 335 | 327 | ||||
Operating Income | 92 | 94 | 287 | 294 | ||||
Other Income (Expense) | ||||||||
Interest, net | (11) | (11) | (34) | (35) | ||||
Other, net | (2) | 1 | (1) | 1 | ||||
Total Other Expense | (13) | (10) | (35) | (34) | ||||
Income Before Income Taxes | 79 | 84 | 252 | 260 | ||||
Income Tax Expense | (1) | - | (1) | - | ||||
Net Income | 78 | 84 | 251 | 260 | ||||
Other Comprehensive Loss | ||||||||
Adjustments to postretirement benefit plan | - - | (1) | - | |||||
Comprehensive Income | $ 78 $ 84 | $ 250 | $ 260 | |||||
CONSOLIDATED BALANCE SHEETS | |||
(In millions, unaudited) | |||
September 30, 2025 | December 31, 2024 | ||
ASSETS | |||
Current assets | |||
Cash and cash equivalents | $ - | $ - | |
Accounts receivable | 75 | 90 | |
Inventories | 51 | 47 | |
Prepayments | 4 | 25 | |
Other current assets | 8 | 11 | |
Total current assets | 138 | 173 | |
Property, plant and equipment, net | 2,283 | 2,271 | |
Goodwill | 565 | 565 | |
Notes receivable from affiliate | 26 | 25 | |
Postretirement benefits assets | 166 | 169 | |
Deferred charges and other assets | 121 | 133 | |
Total Assets | $ 3,299 | $ 3,336 | |
LIABILITIES AND MEMBER'S EQUITY
Current liabilities
Accounts payable | $ 57 | $ 68 |
Accrued taxes | 26 | 21 |
Contractual deposits | 21 | 20 |
Contractual liabilities | 20 | 13 |
Regulatory liabilities | 2 | 10 |
Natural gas imbalance payable | 2 | 11 |
Other current liabilities | 22 | 12 |
Total current liabilities | 150 | 155 |
Long-term liabilities and deferred credits | ||
Long-term debt | 800 | 800 |
Debt fair value adjustments | 46 | 52 |
Regulatory liabilities | 70 | 65 |
Other long-term liabilities and deferred credits | 43 | 35 |
Total long-term liabilities and deferred credits | 959 | 952 |
Total Liabilities | 1,109 | 1,107 |
Member's Equity | ||
Member's equity | 2,158 | 2,196 |
Accumulated other comprehensive income | 32 | 33 |
Total Member's Equity | 2,190 | 2,229 |
Total Liabilities and Member's Equity | $ 3,299 | $ 3,336 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions, unaudited)
Nine Months Ended September 30,
2025 | 2024 | |
Cash Flows From Operating Activities | ||
Net income | $ 251 | $ 260 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 79 | 77 |
Other non-cash items | (2) | (2) |
Changes in components of working capital: | ||
Accounts receivable | 15 | 3 |
Prepayments | 21 | 18 |
Accounts payable | 2 | (4) |
Other current assets and liabilities | 6 | 5 |
Other long-term assets and liabilities | 32 | 10 |
Net Cash Provided by Operating Activities | 404 | 367 |
Cash Flows From Investing Activities | ||
Capital expenditures | (106) | (102) |
Net change in notes receivable from affiliate | (1) | - |
Other, net | (8) | 1 |
Net Cash Used in Investing Activities | (115) | (101) |
Cash Flows From Financing Activities | ||
Contributions from Member | 8 | 19 |
Distributions to Member | (297) | (285) |
Net Cash Used in Financing Activities | (289) | (266) |
Net Change in Cash and Cash Equivalents | - | - |
Cash and Cash Equivalents, beginning of period | - | - |
Cash and Cash Equivalents, end of period | $ - | $ - |
Non-cash Investing and Financing Activities | ||
Increase in property, plant and equipment accruals | $ 3 | |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid during the period for interest (net of capitalized interest) | $ 30 | 31 |
Nine Months Ended September 30,
2025 | 2024 | |
Beginning Balance | $ 2,229 | $ 2,148 |
Net income | 251 | 260 |
Contributions | 8 | 19 |
Distributions | (297) | (285) |
Other comprehensive loss | (1) | - |
Ending Balance | $ 2,190 | $ 2,142 |