Item 2. Properties.

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Item 2. Properties.

To manage the integrity and safety of our natural gas distribution and transmission systems, consistent with PHMSA regulations, we have integrity management programs that integrate information sources and data, identify risks to infrastructure integrity, rank risks, and designate measures and actions to reduce or mitigate risks as appropriate. These programs take into consideration numerous input factors and no single factor is determinative in our decision to take mitigative actions on our distribution or transmission pipeline systems. Based upon these programs, along with the oversight of state regulators responsible for adopting and enforcing the federal pipeline safety regulations, we believe that our distribution and transmission pipeline systems are suitable and adequate for our purposes.

Distribution, transmission, and related assets

In our distribution segment, we owned an aggregate of approximately 76,000 miles of underground distribution and transmission mains throughout our distribution systems. These mains are located on easements or rights-of-way. We maintain our mains through a program of continuous inspection and repair and believe that our system of mains is in good condition. Through our pipeline and storage segment we owned approximately 5,700 miles of gas transmission lines.

Storage Assets

We own underground gas storage facilities in several states to supplement the supply of natural gas in periods of peak demand. The following table summarizes certain information regarding our underground gas storage facilities at September 30, 2025:


State	Working Capacity (Mcf)	Base Gas (Mcf)(1)	Total Capacity (Mcf)	Maximum Daily Delivery Capability (Mcf)
Distribution Segment
Kentucky	7,956,991	9,562,283	17,519,274	151,719
Kansas	3,239,000	2,300,000	5,539,000	32,000
Mississippi	1,907,571	2,442,917	4,350,488	29,136
Total	13,103,562	14,305,200	27,408,762	212,855
Pipeline and Storage Segment
Texas	52,761,317	20,155,025	72,916,342	1,653,000
Louisiana	411,040	256,900	667,940	56,000
Total	53,172,357	20,411,925	73,584,282	1,709,000
Total	66,275,919	34,717,125	100,993,044	1,921,855

(1)Base gas represents the volume of gas that must be retained in a facility to maintain reservoir pressure.

Additionally, we contract for storage service in underground storage facilities on many of the interstate and intrastate pipelines serving us to supplement our proprietary storage capacity. The following table summarizes our contracted storage capacity at September 30, 2025:


Segment	Division/Company	Maximum Storage Quantity (MMBtu)	Maximum Daily Withdrawal Quantity (Mcf)(1)
Distribution Segment
	Colorado-Kansas Division	7,343,728	157,692
	Kentucky/Mid-States Division	11,699,976	281,320
	Louisiana Division	2,594,875	177,765
	Mid-Tex Division	46,771,428	1,260,000
	Mississippi Division	5,799,536	222,764
	West Texas Division	6,500,000	246,000
Total		80,709,543	2,345,541
Pipeline and Storage Segment
	Trans Louisiana Gas Pipeline, Inc.	1,500,000	71,250

Total Contracted Storage Capacity		82,209,543	2,416,791

(1)Maximum daily withdrawal quantity (MDWQ) amounts will fluctuate depending upon the season and the month. Unless otherwise noted, MDWQ amounts represent the MDWQ amounts as of November 1, which is the beginning of the winter heating season.

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