VARIABLE INTEREST ENTITES (Notes)

12 Months Ended

Dec. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entity Disclosure

VARIABLE INTEREST ENTITY

KGSS-I is a special-purpose, wholly owned subsidiary of ONE Gas that was formed for the purpose of issuing securitized bonds to recover extraordinary costs incurred by Kansas Gas Service resulting from Winter Storm Uri. KGSS-I’s assets cannot be used to settle ONE Gas’ obligations and the holders of the Securitized Utility Tariff Bonds have no recourse against ONE Gas. See Note 5 for additional information about the securitization financing.

KGSS-I is considered to be a variable interest entity. As a result, KGSS-I is included in the consolidated financial statements of ONE Gas. No gain or loss was recognized upon initial consolidation.

The following table summarizes the impact of KGSS-I on our consolidated balance sheets:

	December 31,
	2024		2023
	(Thousands of dollars)
Restricted cash and cash equivalents	$	20,542	$	20,552
Accounts receivable	4,659		5,133
Securitized intangible asset, net	265,951		293,619
Total assets	$	291,152	$	319,304
Current maturities of securitized utility tariff bonds	28,956		27,430
Accounts payable	319		393
Accrued interest	6,568		7,207
Securitized utility tariff bonds, excluding current maturities, net of discounts and issuance costs $4.8 million and $5.3 million, as of December 31, 2024 and December 31, 2023, respectively	253,568		282,506
Equity	1,741		1,768
Total liabilities and equity	$	291,152	$	319,304

The following table summarizes the impact of KGSS-I on our consolidated statements of income:

	Year Ended December 31,
	2024		2023		2022
	(Thousands of dollars)
Operating revenues	$	44,390	$	48,677	$	5,769
Operating expense	(443)		(440)		(52)
Amortization expense	(27,668)		(30,219)		(3,521)
Interest income	671		696		6
Interest expense	(16,806)		(18,552)		(2,202)
Income before income taxes	$	144	$	162	$	—
Income Taxes	(26)		26		—
Net Income	$	118	$	188	$	—

The following table summarizes the amortization expense related to the securitized intangible asset expected to be recognized in our consolidated statements of income:

For the year ending:	(Thousands of dollars)
2025	$	29,102
2026	30,736
2027	32,462
2028	34,283
2029	36,206
Thereafter	103,162