VARIABLE INTEREST ENTITES (Notes)

12 Months Ended

Dec. 31, 2025

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. The Securitized Utility Tariff Bonds have a scheduled final payment date of August 1, 2032. 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,
	2025		2024
	(Thousands of dollars)
Restricted cash and cash equivalents	$	23,107	$	20,542
Accounts receivable	4,463		4,659
Securitized intangible asset, net	233,786		265,951
Total assets	$	261,356	$	291,152
Current maturities of securitized utility tariff bonds, net of issuance costs	30,566		28,956
Accounts payable	136		319
Accrued interest	5,894		6,568
Securitized utility tariff bonds, excluding current maturities, net of discounts and issuance costs $4.3 million and $4.8 million, as of December 31, 2025 and December 31, 2024, respectively	223,020		253,568
Paid-in capital	1,680		1,681
Retained earnings	60		60
Total liabilities and equity	$	261,356	$	291,152

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

	Year Ended December 31,
	2025		2024		2023
	(Thousands of dollars)
Operating revenues	$	47,446	$	44,390	$	48,677
Operating expense	(442)		(443)		(440)
Amortization expense	(32,164)		(27,668)		(30,219)
Interest income	551		671		696
Interest expense	(15,246)		(16,806)		(18,552)
Income before income taxes	145		144		162
Income taxes	—		(26)		26
Net income	$	145	$	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:

	December 31,
Future amortization expense related to securitized intangible asset	2025
	(Thousands of dollars)
2026	$	30,271
2027	31,996
2028	33,818
2029	35,740
2030	37,770
Thereafter	64,191
Total amortization expense	$	233,786