Accessibility StatementSkip Navigation TULSA, Okla., Sept. 12, 2025 /PRNewswire/ -- ONE Gas, Inc. (NYSE: OGS) today announced it will participate in the American Gas Association Mini-Forum, September 15-16, 2025, in Boston. Christopher Sighinolfi, senior vice president and chief financial officer, and Mark Smith, vice president and treasurer, will be conducting a series of meetings with members of the investment community. The materials utilized at the conference are accessible on the ONE Gas website, www ...

ONE Gas (OGS) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a changi ...

Core Viewpoint - ONE Gas, Inc. (OGS) is positioned as a strong investment option in the utility sector due to its 100% regulated operations, customer base expansion, and strategic investments aimed at improving infrastructure and service efficiency [1] Group 1: Growth Projections - The Zacks Consensus Estimate for OGS's 2025 earnings per share (EPS) has risen by nearly 1.2% over the past 90 days to $4.32 [2] - The Zacks Consensus Estimate for 2025 sales is projected at $2.43 billion, reflecting a year-over-year increase of 16.6% [2] - OGS's long-term earnings growth rate is estimated at 5.56% over the next three to five years [2] Group 2: Dividend History - OGS plans to reward shareholders with an average annual dividend increase of 1-2% through 2029, contingent on board approval [3] - The current quarterly dividend stands at 67 cents per share, leading to an annualized dividend of $2.68 [3] - OGS's current dividend yield is 3.57%, significantly higher than the Zacks S&P 500 composite's yield of 1.16% [3] Group 3: Debt Position - OGS's total debt to capital ratio is 40.44%, which is better than the industry average of 51.09% [4] - The time-to-interest earned ratio at the end of Q2 2025 was 3, indicating the company's strong ability to meet future interest obligations [4] Group 4: Systematic Investments & Customer Growth - OGS's capital investment for 2025, including asset removal costs, is expected to be $750 million, with nearly $180 million allocated for customer extensions [5][8] - The ongoing capital expenditures focus on pipeline integrity, service extensions, system capacity increases, and cybersecurity [5] - Since 2015, OGS has consistently increased its customer base, with a 0.8% year-over-year growth in Q2 2025, serving 2,302,000 customers [6][8] - An average annual customer growth of 0.9% is anticipated through 2028 [6][8] Group 5: Price Performance - OGS's stock has increased by 4% over the past six months, outperforming the industry's growth of 2.2% [7]

Core Viewpoint - MDU Resources is currently viewed as a superior value option compared to ONE Gas based on various valuation metrics [7] Valuation Metrics - MDU Resources has a forward P/E ratio of 17.18, while ONE Gas has a forward P/E of 17.45 [5] - MDU's PEG ratio is 2.48, indicating a more favorable expected earnings growth rate compared to ONE Gas's PEG ratio of 3.14 [5] - MDU has a P/B ratio of 1.22, compared to ONE Gas's P/B ratio of 1.42, suggesting MDU is more undervalued relative to its book value [6] Earnings Outlook - Both MDU Resources and ONE Gas have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook [3]

[Part I. Financial Information](index=8&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Consolidated Financial Statements](index=8&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) The company's unaudited statements show increased net income and total assets of $8.36 billion as of June 30, 2025 Consolidated Statements of Income Highlights (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Total revenues** | $1,358,931 | $1,112,457 | | **Operating income** | $252,354 | $215,140 | | **Net income** | $151,452 | $126,560 | | **Diluted EPS** | $2.51 | $2.23 | Consolidated Balance Sheet Highlights | Metric | June 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | $8,359,141 | $8,425,571 | | **Total Liabilities** | $5,174,806 | $5,321,023 | | **Total Equity** | $3,184,335 | $3,104,548 | | **Total Long-Term Debt (net)** | $2,370,863 | $2,385,286 | Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Cash from Operating Activities** | $448,809 | $250,926 | | **Cash used in Investing Activities** | $(348,511) | $(341,776) | | **Cash provided by (used in) Financing Activities** | $(136,114) | $83,929 | [Note 2. Revenue](index=15&type=section&id=Note%202.%20Revenue) Total revenues grew to $1.36 billion for the first six months of 2025, driven by higher natural gas sales Disaggregated Revenue (Six Months Ended June 30) | Revenue Source | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Natural gas sales to customers | $1,239,435 | $987,856 | | Transportation revenues | $74,465 | $69,554 | | Securitization customer charges | $24,842 | $23,226 | | Miscellaneous revenues | $13,317 | $12,065 | | **Total revenues from contracts with customers** | **$1,352,059** | **$1,092,701** | [Note 3. Regulatory Assets and Liabilities](index=16&type=section&id=Note%203.%20Regulatory%20Assets%20and%20Liabilities) Net regulatory liabilities increased to $211.3 million by June 30, 2025, due to changes in various regulatory accounts Net Regulatory Assets and Liabilities | Date | Total Regulatory Assets (in thousands) | Total Regulatory Liabilities (in thousands) | Net Position (in thousands) | | :--- | :--- | :--- | :--- | | June 30, 2025 | $310,087 | $(521,417) | $(211,330) | | Dec 31, 2024 | $379,216 | $(490,088) | $(110,872) | - Amortization of regulatory assets, representing recovery through rates, was **$7.4 million** for the six months ended June 30, 2025, compared to **$9.5 million** for the same period in 2024[44](index=44&type=chunk) [Note 4 & 5. Credit Facility and Long-Term Debt](index=17&type=section&id=Note%204%20%26%205.%20Credit%20Facility%20and%20Long-Term%20Debt) The company maintained a total debt-to-capital ratio of 50.7% with $2.40 billion in long-term debt as of June 30, 2025 - The company has a **$1.35 billion** revolving credit facility and a commercial paper program of the same amount, with **$872.4 million** of commercial paper outstanding at June 30, 2025[45](index=45&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) Long-Term Debt Composition (June 30, 2025) | Debt Instrument | Amount (in thousands) | | :--- | :--- | | Total Senior Notes | $2,150,000 | | KGSS-I Securitized Utility Tariff Bonds | $272,798 | | **Total long-term debt, net** | **$2,400,627** | - The company's total debt-to-capital ratio was **50.7%** at June 30, 2025, in compliance with the credit agreement's covenant of no more than 70%[46](index=46&type=chunk) [Note 6. Equity](index=18&type=section&id=Note%206.%20Equity) The company initiated a forward sale agreement for 2.5 million shares and maintained a $225.5 million ATM program - In May 2025, the company entered into a forward sale agreement for **2.5 million shares** of common stock[53](index=53&type=chunk) - As of June 30, 2025, the company had **$225.5 million** of equity available for issuance under its at-the-market (ATM) program[54](index=54&type=chunk) - A dividend of **$0.67 per share** was declared in August 2025, payable in September 2025[55](index=55&type=chunk) [Note 12. Commitments and Contingencies](index=22&type=section&id=Note%2012.%20Commitments%20and%20Contingencies) The company manages environmental remediation costs for former MGP sites and complies with federal pipeline safety regulations - The company is responsible for environmental conditions at **12 former MGP sites** in Kansas and is governed by a consent agreement with the KDHE for investigation and remediation[72](index=72&type=chunk)[73](index=73&type=chunk) - In July 2025, the KCC approved an increase in the cap for the Accounting Authority Order (AAO) to recover MGP remediation costs to **$32.0 million** from $15.0 million[74](index=74&type=chunk) - The company is subject to federal pipeline safety regulations from PHMSA, and new rules under the PIPES Act could require material expenditures[79](index=79&type=chunk)[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income rose to $151.5 million in H1 2025, driven by new rates and customer growth, with robust liquidity and ongoing regulatory activities [Regulatory Activities](index=28&type=section&id=Regulatory%20Activities) The company is actively pursuing and has received approvals for rate increases across Oklahoma, Kansas, and Texas - **Oklahoma:** A settlement for a **$41.1 million** base rate revenue increase was approved by the OCC in July 2025[103](index=103&type=chunk) - **Kansas:** The KCC approved a **$7.2 million** increase related to the Gas System Reliability Surcharge (GSRS), effective August 2025[104](index=104&type=chunk) - **Texas:** Filed a rate case for a **$41.1 million** revenue increase and received approvals for GRIP filings in the West-North and Central-Gulf areas totaling **$23.6 million**[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) [Financial Results and Operating Information](index=29&type=section&id=Financial%20Results%20and%20Operating%20Information) Operating income increased 17% year-over-year to $252.4 million, driven by new rates and customer growth Selected Financial Results (Six Months Ended June 30) | Metric | 2025 (in millions) | 2024 (in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Total revenues | $1,359.0 | $1,112.5 | 22% | | Cost of natural gas | $630.4 | $455.0 | 39% | | Operating income | $252.4 | $215.1 | 17% | - The **$37.3 million increase** in six-month operating income was primarily due to an increase of **$73.0 million** from new rates and **$3.9 million** from net customer growth, partially offset by higher expenses[117](index=117&type=chunk)[122](index=122&type=chunk) - The average total number of customers increased by **16,000** to 2,303,000 for the six months ended June 30, 2025, compared to the same period in 2024[124](index=124&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity remains strong, supported by operating cash flow and a $1.35 billion credit facility, with 2025 capex projected at $750 million - Primary liquidity sources are operating cash flow and commercial paper, supported by a **$1.35 billion** revolving credit facility[128](index=128&type=chunk)[133](index=133&type=chunk) Credit Ratings (as of June 30, 2025) | Rating Agency | Long-term Rating | Short-term Rating | Outlook | | :--- | :--- | :--- | :--- | | Moody's | A3 | Prime-2 | Stable | | S&P | A- | A-2 | Stable | - Full-year 2025 capital expenditures and asset removal costs are expected to be approximately **$750 million**[123](index=123&type=chunk) [Cash Flow Analysis](index=35&type=section&id=Cash%20Flow%20Analysis) Operating cash flow increased significantly to $448.8 million due to favorable working capital changes Cash Flow Summary (Six Months Ended June 30) | Activity | 2025 (in millions) | 2024 (in millions) | | :--- | :--- | :--- | | Operating Cash Flow | $448.8 | $250.9 | | Investing Cash Flow | $(348.5) | $(341.8) | | Financing Cash Flow | $(136.1) | $83.9 | - The increase in operating cash flow was primarily due to working capital changes related to the recovery of regulatory assets[146](index=146&type=chunk) - The increase in cash used in financing activities was primarily due to the repayment of notes payable[147](index=147&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks, including commodity, interest-rate, and credit risk, are actively managed and mitigated - Commodity price risk from natural gas price fluctuations is mitigated by purchased-gas cost adjustment mechanisms, which pass costs to customers without profit[169](index=169&type=chunk) - Interest-rate risk exists from commercial paper borrowings and future debt financing needs, which the company may manage using fixed-rate debt and swaps[171](index=171&type=chunk) - Counterparty credit risk is not material due to a large, diversified customer base of approximately **2.3 million** and tariff provisions for security deposits[172](index=172&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed effective as of June 30, 2025, with no material changes to internal controls - Management concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[173](index=173&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[174](index=174&type=chunk) [Part II. Other Information](index=41&type=section&id=Part%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing litigation from normal business operations is not expected to have a material adverse effect on the company's financials - The company states that it is involved in various litigation matters from the normal course of operations, but believes the outcomes will not have a material adverse effect on its financials[175](index=175&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This report references the risk factors disclosed in the company's Annual Report, with no material changes noted - The report directs investors to consider the risks set forth in the company's Annual Report, noting that no material changes have occurred in the risk factors[176](index=176&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including governance documents, underwriting agreements, and officer certifications - Key exhibits filed include an Underwriting Agreement and a Forward Sale Agreement, both dated May 8, 2025, related to a common stock offering[182](index=182&type=chunk) - Certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act are included as exhibits[182](index=182&type=chunk)

One Gas (OGS 1.64%), the regulated natural gas utility providing service to 2.3 million customers across Oklahoma, Kansas, and Texas, released its second quarter results on August 5, 2025. The key news from the earnings release was that GAAP earnings per share slightly exceeded estimates at $0.53, while GAAP revenue fell short of analysts' expectations by $108 million, reaching $423.7 million (GAAP). This GAAP revenue miss was significant, but Net income (GAAP) grew to $32.0 million, an increase of 17.6% ye ...

Financial Data and Key Metrics Changes - Net income for the second quarter was $32 million or $0.53 per diluted share, compared to $27.2 million or $0.48 in the same period last year, reflecting a year-over-year increase [4][8] - The company raised its full-year 2025 financial guidance, now expecting net income between $261 million and $267 million and earnings per diluted share between $4.32 and $4.42, both 2.5% above the respective midpoints of the initial guidance ranges [5][7] - Operating and maintenance expenses increased by 7.5% year over year in the second quarter, primarily due to higher labor-related expenses [8] Business Line Data and Key Metrics Changes - Revenues for the second quarter increased by approximately $21.1 million from new rates and $1.5 million from continued customer growth [8] - The company installed nearly 11,400 new meters through the first half of the year, sustaining a momentum of over 9% year-over-year increase in new customer additions [16] Market Data and Key Metrics Changes - The Oklahoma Corporation Commission approved a $41.1 million revenue increase effective in June, and Texas Gas Service filed a rate case requesting a $41.1 million increase [11][12] - The Kansas Corporation Commission approved a $7.2 million increase under the gas system reliability surcharge statute, with new rates taking effect this month [13] Company Strategy and Development Direction - The company is focused on disciplined execution and long-term growth, with a commitment to system integrity and responding to community needs [18][39] - The Austin system reinforcement project is highlighted as a significant capital investment aimed at expanding system capacity to support growing demand [14][40] - The company is pursuing opportunities in data centers, advanced manufacturing, and utility-scale generation, aiming to enhance system resiliency and align with customer needs [17][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong operational and financial results for the first half of the year and the positive impact of Texas House Bill 4,384 on financials [4][5] - The company remains optimistic about growth opportunities in Texas and other jurisdictions, driven by positive migration trends and job creation [39][40] Other Important Information - The company declared a dividend of $0.67 per share, unchanged from the previous quarter [10] - The company completed $190 million in capital projects during the second quarter, in line with the same period last year [14] Q&A Session Summary Question: Impact of House Bill 4,384 on financials - Management explained that the bill extends deferrals and accruals to all capital expenditures in Texas, potentially adding $4 million to $5 million of annual pretax earnings [24][28] Question: Long-term growth rate considerations - Management confirmed that the updated midpoint of guidance for 2025 will be used as the base for the new five-year range [34] Question: Texas capital plans and growth - Management stated that there will be no significant changes to the capital plans due to the bill, but growth in Texas jurisdictions is expected to continue [38] Question: Texas rate case and consolidation benefits - Management highlighted that consolidation will lead to efficiency, reducing administrative costs and benefiting customers [47] Question: Opportunities in power load growth and data centers - Management indicated that there are significant inbound inquiries for data center opportunities, and they are pursuing projects that enhance system resiliency [50]

Financial Data and Key Metrics Changes - Net income for Q2 2025 was $32 million or $0.53 per diluted share, compared to $27.2 million or $0.48 in the same period last year, reflecting a year-over-year increase [4][7] - The company raised its full-year 2025 financial guidance, now expecting net income between $261 million and $267 million and earnings per diluted share between $4.32 and $4.42, both 2.5% above the respective midpoints of the initial guidance ranges [5][6] Business Line Data and Key Metrics Changes - Revenues for the second quarter increased by approximately $21.1 million from new rates and $1.5 million from continued customer growth [7] - Operating and maintenance expenses increased by 7.5% year-over-year, primarily due to higher labor-related expenses [7] Market Data and Key Metrics Changes - The Oklahoma Corporation Commission approved a $41.1 million revenue increase effective June, and Texas Gas Service filed a rate case requesting a $41.1 million increase [12][13] - The company installed nearly 11,400 new meters in the first half of the year, with a year-over-year increase of over 9% in new customer additions [16] Company Strategy and Development Direction - The company is focused on disciplined execution and long-term growth, with significant capital investments in system safety and reliability [18] - The Austin system reinforcement project is the largest capital investment since the company's separation from OneOak in 2014, aimed at expanding system capacity to support growing demand [15][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and the positive impact of Texas House Bill 4,384, which supports the recovery of system investments [5][25] - The company remains committed to balancing system needs with customer impact, emphasizing affordability in planning and implementation of rate mechanisms [12][14] Other Important Information - The company completed $190 million in capital projects during the second quarter, consistent with the same period last year [15] - The Board of Directors declared a dividend of $0.67 per share, unchanged from the previous quarter [10] Q&A Session Summary Question: Impact of House Bill 4,384 on financials - Management explained that House Bill 4,384 extends deferrals and accruals to all capital expenditures in Texas, potentially adding $4 million to $5 million of annual pretax earnings [24][25] Question: Long-term growth rate considerations - Management confirmed that the updated midpoint of guidance for 2025 will be used as the base for the new five-year range, consistent with past practices [35] Question: Texas capital plans and growth - Management stated that there will be no significant changes to capital plans due to the favorable bill enactment, but growth in Texas jurisdictions is expected to continue [38][39] Question: Texas rate case and consolidation benefits - Management noted that the consolidation of service areas will lead to efficiency and lower administrative costs, benefiting customers [46] Question: Opportunities in power load growth and data centers - Management highlighted significant inbound inquiries for data center and advanced manufacturing projects, emphasizing a strategic approach to enhance system resiliency [48][49] Question: Timeline for potential projects - Management indicated that some projects could manifest in the near term, while others may take longer depending on the required infrastructure [56]

ONE Gas, Inc. (OGS) reported second-quarter 2025 operating earnings per share (EPS) of 53 cents, which came in line with the Zacks Consensus Estimate. The figure was 10.4% higher than the year-ago quarter's earnings of 48 cents. OGS' Revenues ONE Gas recorded revenues of $423.7 million, which surpassed the Zacks Consensus Estimate of $404 million by 4.9%. The top line also increased 19.7% from $354.1 million in the prior-year quarter. Key Takeaways Total operating expenses were $233.9 million, up 9.9% year ...

Core Insights - ONE Gas (OGS) reported revenue of $423.74 million for the quarter ended June 2025, marking a year-over-year increase of 19.7% and exceeding the Zacks Consensus Estimate of $404.11 million by 4.86% [1] - The earnings per share (EPS) for the same period was $0.53, compared to $0.48 a year ago, aligning with the consensus EPS estimate [1] - The stock has returned +0.8% over the past month, slightly underperforming the Zacks S&P 500 composite's +1% change, and currently holds a Zacks Rank 2 (Buy) [3] Revenue and Earnings Performance - Natural gas sales revenue was reported at $369.5 million, exceeding the two-analyst average estimate of $337.01 million, with a year-over-year change of +20.4% [4] - Transportation revenues reached $31 million, surpassing the two-analyst average estimate of $26.23 million, reflecting a year-over-year increase of +2.3% [4] Volume Metrics - Total natural gas sales volumes delivered were 18,900.00 MMcf, exceeding the three-analyst average estimate of 16,538.68 MMcf [4] - Total volumes delivered were 67,600.00 MMcf, compared to the average estimate of 70,277.42 MMcf [4] - Residential natural gas sales volumes were reported at 12,600.00 MMcf, above the two-analyst average estimate of 11,380.00 MMcf [4] - The average number of customers was reported at 2,302, slightly above the two-analyst average estimate of 2,300 [4]