SouthStar Reports Increase In Net Income, Customer Count

In reporting full-year 2022 earnings recently, Southern Company reported an increase in net income and customer count in its Gas Marketing Services segment, which consists of SouthStar Energy Services (operating under various trade names)

Segment net income for Southern Company's Gas Marketing Services segment was $94 million for the year 2022, up $6 million from $88 million in 2021

The increase was primarily due to a $163 million increase in operating revenues in the Gas Marketing Services segment, as a result of higher commodity prices, colder weather, and higher sales to commercial customers, partially offset by a $155 million increase in operating expenses primarily due to $149 million in higher cost of natural gas and an increase of $3 million in income taxes as a result of higher pre-tax earnings.

Specifically, the Gas Marketing Services segment's revenue for 2022 was $638 million, versus $475 million in 2021

As of the end of 2022, SouthStar served approximately 622,000 energy customers, up from 598,000 as of September 30, 2022 and 603,000 as of the end of 2021.

"Gas marketing services' customers are primarily located in Georgia and Illinois," Southern Co. noted

SouthStar's market share in Georgia grew to 29.3% as of December 31, 2022, up from 28.3% as of September 30, 2022 and 28.7% a year ago

Annual volumes for the Gas Marketing Services segment were as follows (mmBtu in millions):

Firm:                      2022     2021
   Georgia                   35       34
   Other                     18       18
Interruptible Large C&I      14       14