JOINT OWNERSHIP AGREEMENTS

Southern Company Gas

See Note 4 to the financial statements of Southern Company Gas in Item 8 of the Form 10-K for additional information.

Equity Method Investments

The carrying amounts of Southern Company Gas' equity method investments as of September 30, 2017 and December 31, 2016 and related income from those investments for the successor three and nine month periods ended September 30, 2017, the successor three-month period ended September 30, 2016, and for the predecessor period January 1, 2016 through June 30, 2016 were as follows:



Balance Sheet Information	September 30, 2017		December 31, 2016
	(in millions)
SNG	$	1,385	$	1,394
Atlantic Coast Pipeline	61		33
PennEast Pipeline	49		22
Triton	43		44
Pivotal JAX LNG, LLC	40		16
Horizon Pipeline	30		30
Other	1		2
Total	$	1,609	$	1,541



	Successor		Successor		Successor		Predecessor
Income Statement Information	Three Months Ended September 30, 2017		Three Months Ended September 30, 2016		Nine Months Ended September 30, 2017		January 1, 2016 through June 30, 2016
	(in millions)		(in millions)		(in millions)		(in millions)
SNG	$	28	$	27	$	86	$	—
PennEast Pipeline	1		—		5		—
Atlantic Coast Pipeline	1		1		4		—
Triton	1		1		3		1
Horizon Pipeline	1		—		2		1
Total	$	32	$	29	$	100	$	2

Southern Natural Gas

In September 2016, Southern Company Gas, through a wholly-owned, indirect subsidiary, acquired a 50% equity interest in SNG, which is accounted for as an equity method investment. On March 31, 2017, Southern Company Gas made an additional $50 million contribution to maintain its 50% equity interest in SNG. See Note 11 to the financial statements of Southern Company Gas under "Investment in SNG" in Item 8 of the Form 10-K for additional information on this investment. Selected financial information of SNG for the three and nine months ended September 30, 2017 and for the period September 1, 2016 through September 30, 2016 is as follows:



Income Statement Information	Three Months Ended September 30, 2017		Nine Months Ended September 30, 2017		September 1, 2016 through September 30, 2016
	(in millions)
Revenues	$	146	$	445	$	82
Operating income	$	71	$	218	$	60
Net income	$	57	$	172	$	55