CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited) (excluding footnotes)
SOUTHERN 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 1
Consolidated Statements of Cash Flows 3
Consolidated Statements of Members' Equity 4
CONSOLIDATED STATEMENTS OF INCOME
(In millions, unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2025 | 2024 | 2025 | 2024 | |||||
Revenues | $ | 164 | $ | 158 | $ | 491 | $ | 487 |
Operating Costs and Expenses | ||||||||
Operations and maintenance | 43 | 41 | 128 | 118 | ||||
Depreciation and amortization | 23 | 21 | 67 | 64 | ||||
General and administrative | 9 | 9 | 29 | 27 | ||||
Taxes, other than income taxes | 11 | 9 | 31 | 29 | ||||
Total Operating Costs and Expenses | 86 | 80 | 255 | 238 | ||||
Operating Income | 78 | 78 | 236 | 249 | ||||
Other Income (Expense) | ||||||||
Earnings from equity investment | 1 | 1 | 5 | 5 | ||||
Interest, net | (18) | (13) | (45) | (41) | ||||
Other, net | 3 | 3 | (8) | 7 | ||||
Total Other Expense | (14) | (9) | (48) | (29) | ||||
Net Income | $ | 64 | $ | 69 | $ | 188 | $ | 220 |
September 30, | December 31, | ||
2025 | 2024 | ||
ASSETS | |||
Current assets | |||
Cash and cash equivalents | $ 15 | $ 17 | |
Accounts receivable | 38 | 40 | |
Accounts receivable from affiliates | 19 | 21 | |
Inventories | 28 | 25 | |
Regulatory assets | 5 | 18 | |
Other current assets | 6 | 3 | |
Total current assets | 111 | 124 | |
Property, plant and equipment, net | 2,730 | 2,623 |
Investment | 83 | 83 |
Regulatory assets | 24 | 24 |
Deferred charges and other assets | 76 | 77 |
Total Assets | $ 3,024 | $ 2,931 |
LIABILITIES AND MEMBERS' EQUITY
Current liabilities
Accounts payable | $ 36 | $ 54 |
Accounts payable to affiliates | 17 | 16 |
Accrued interest | 7 | 18 |
Accrued taxes, other than income taxes | 31 | 22 |
Rate liabilities | - | 17 |
Other current liabilities | 22 | 18 |
Total current liabilities | 113 | 145 |
Long-term liabilities and deferred credits | ||
Long-term debt (at net carrying value) | 1,212 | 915 |
Regulatory liabilities | 57 | 58 |
Other long-term liabilities and deferred credits | 3 | 5 |
Total long-term liabilities and deferred credits | 1,272 | 978 |
Total Liabilities | 1,385 | 1,123 |
Members' Equity | 1,639 | 1,808 |
Total Liabilities and Members' Equity | $ 3,024 | $ 2,931 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions, unaudited)
Nine Months Ended September 30,
2025 | 2024 | |
Cash Flows From Operating Activities | ||
Net income | $ 188 | $ 220 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 67 | 64 |
Earnings from equity investment | (5) | (5) |
Other non-cash items | (4) | (5) |
Distributions from equity investment earnings | 5 | 3 |
Changes in components of working capital: | ||
Accounts receivable | 4 | (5) |
Regulatory assets | 13 | 4 |
Accounts payable | 4 | (1) |
Accrued interest | (11) | (14) |
Accrued taxes, other than income | 9 | 6 |
Regulatory liabilities | 2 | (9) |
Other current assets and liabilities | (26) | (5) |
Other long-term assets and liabilities | (11) | (16) |
Net Cash Provided by Operating Activities | 235 | 237 |
Cash Flows From Investing Activities | ||
Capital expenditures | (175) | (108) |
Other, net | (2) | (7) |
Net Cash Used in Investing Activities | (177) | (115) |
Cash Flows From Financing Activities | ||
Issuances of debt | 306 | 104 |
Payments of debt | (6) | (104) |
Debt issuance costs | (3) | - |
Contributions from Members | 85 | 129 |
Distributions to Members | (442) | (228) |
Net Cash Used in Financing Activities | (60) | (99) |
Net (Decrease) Increase in Cash and Cash Equivalents | (2) | 23 |
Cash and Cash Equivalents, beginning of period | 17 | 8 |
Cash and Cash Equivalents, end of period | $ 15 | $ 31 |
Non-cash Investing and Financing Activities | ||
Net increase in property, plant and equipment accruals | $ 27 |
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest (net of capitalized interest) $ 56 55
Three Months Ended September 30,
Nine Months Ended September 30,
2025 | 2024 | 2025 | 2024 | |
Beginning Balance | $ 1,874 | $ 1,723 | $ 1,808 | $ 1,676 |
Net income | 64 | 69 | 188 | 220 |
Contributions | 23 | 73 | 85 | 129 |
Distributions | (322) | (68) | (442) | (228) |
Ending Balance | $ 1,639 | $ 1,797 | $ 1,639 | $ 1,797 |