v3.25.2
VARIABLE INTEREST ENTITES (Notes)
 6 Months Ended
Jun. 30, 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:

June 30,December 31,
20252024
(Thousands of dollars)
Restricted cash and cash equivalents$22,176 $20,542 
Accounts receivable5,207 4,659 
Securitized intangible asset, net248,965 265,951 
Total assets$276,348 $291,152 
Current maturities of securitized utility tariff bonds$29,750 $28,956 
Accounts payable121 319 
Accrued interest6,236 6,568 
Securitized utility tariff bonds, excluding current maturities, net of discounts and issuance costs $4.5 million and $4.8 million, as of June 30, 2025 and December 31, 2024, respectively
238,501 253,568 
Paid-in capital 1,680 1,681 
Retained earnings60 60 
Total liabilities and equity$276,348 $291,152 

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

Three Months EndedSix Months Ended
June 30,June 30,
2025202420252024
(Thousands of dollars)
Operating revenues$13,205 $11,555 $24,842 $23,226 
Operating expense(111)(110)(221)(221)
Amortization expense(9,292)(7,295)(16,986)(14,680)
Interest income112 152 260 340 
Interest expense(3,879)(4,266)(7,823)(8,593)
Income before income taxes35 36 72 72 
Income taxes(6)— — — 
Net income$29 $36 $72 $72