Financial Data and Key Metrics Changes - The company reported net income for Q3 2023 of $25.2 million, or $0.45 per diluted share, compared to $23.7 million, or $0.44 per diluted share in Q3 2022, indicating a year-over-year increase in earnings [31] - Earnings per diluted share guidance has been narrowed to a range of $4.06 to $4.22 for the year [30] - Interest expense through the first three quarters of 2023 is up approximately 40% from the same period last year, primarily due to rising rates on commercial paper and the issuance of $300 million of 4.25% senior notes in August 2022 [8] Business Line Data and Key Metrics Changes - The company expects to invest approximately $725 million in capital for 2023, an increase from the original guidance of $675 million, mainly due to system maintenance and reinforcement projects [7] - Employee expenses increased by $7.5 million due to planned workforce investments, although there was a decrease of $2.3 million in outside services costs as work was insourced [9] Market Data and Key Metrics Changes - The company is experiencing strong economic growth in Texas, Oklahoma, and Kansas, with new manufacturing and technology-based jobs driving demand for natural gas [4][5] - Despite elevated mortgage rates impacting homebuilding, the company remains optimistic about long-term growth in its service territories [29] Company Strategy and Development Direction - The company is focused on prudent expense management and enhancing system reliability while meeting growing customer demand [27] - A significant investment in capital projects is aimed at supporting future customer needs and ensuring safety remains a top priority [29] - The company is actively pursuing regulatory approvals for new tariffs and rate adjustments to recover infrastructure investments [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by inflation and rising interest rates but emphasized the company's ability to navigate these issues effectively [30] - The company remains confident in the durability of its growth, supported by ongoing economic development in its service areas [20][61] Other Important Information - The company expanded its credit facility to $1.2 billion from $1 billion to ensure adequate liquidity amid geopolitical uncertainties [11] - The company welcomed a new Senior Vice President and Chief Human Resources Officer to enhance workforce development [42] Q&A Session Summary Question: EPS growth outlook amidst recent shifts - Management noted that while there are many moving parts affecting the five-year outlook, they remain confident in the 4% to 6% EPS growth outlook despite recent challenges [18] Question: Timing for 2024 annual guidance slides - Management indicated that they plan to continue the cadence established last year for releasing guidance, aiming for transparency regarding future opportunities [49][64] Question: Customer bill trajectory for winter 2023-2024 - Management projected an 8% to 10% decrease in average customer bills compared to the previous year, which averaged around $81 per month [55] Question: Weather impact on EPS guidance - Management stated that they anticipate normal weather and are largely protected from significant swings due to their weather normalization mechanism, thus not seeing much volatility in EPS [56]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2023. Oklahoma 46-3561936 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 15 East Fifth Street Tulsa, OK 74103 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (918) 947-7000 OR ☐ Transitio ...

Financial Data and Key Metrics Changes - Net income for Q2 2023 was $32.7 million or $0.58 per diluted share, compared to $32.1 million or $0.59 per diluted share in Q2 2022, indicating a slight increase in net income year-over-year [13] - Operating income increased by $5.4 million year-over-year, driven by a $14.1 million increase from new rates and growth in the customer base [13] - Operations and maintenance expenses rose by $8 million compared to Q2 2022, primarily due to a $6.7 million increase in employee-related costs [15] Business Line Data and Key Metrics Changes - The company set approximately 25,800 new customer connections in the 12 months ended June 30, 2023, which is a 2% increase year-over-year [23] - Capital expenditures for Q2 were approximately $190 million, up from $149 million in 2022, with full-year capital investments on track for a forecast of $675 million [25] Market Data and Key Metrics Changes - Weather conditions were 7% warmer than the prior year and 11% warmer than normal, but the impact on earnings was mitigated by a weather normalization mechanism [14] - The average commercial paper balance was down 60% compared to last year, but the weighted average interest rate was approximately 5.5%, significantly higher than the 1.3% rate in Q2 2022 [24] Company Strategy and Development Direction - The company is focused on safely operating a growing system while cultivating long-term value, with an emphasis on efficiency and workforce development [7][9] - The company is actively managing macroeconomic conditions and has modified its approach to damage prevention and line locating to reduce costs and improve outcomes [9] Management's Comments on Operating Environment and Future Outlook - Management noted that inflation pressures are cooling at a national level, but the timeline for normalization may be elongated [45] - The company remains optimistic about managing the impact of inflation on operating and maintenance expenses going into 2024 and 2025 [45] Other Important Information - The Board of Directors declared a dividend of $0.65 per share, unchanged from the previous quarter [27] - The company has appointed Deborah Hersman to the Board, bringing significant safety-related experience [37] Q&A Session Summary Question: How does inflation in service territories compare to national levels? - Management indicated that inflation in their territories is in line with national averages, as many contracts are priced based on national CPI [44] Question: Is there an ability to pull forward operating and maintenance expenses? - Management stated that there is limited opportunity to manipulate O&M expenses due to the need for a steady workflow [46] Question: What is the outlook for EPS growth if inflation normalizes? - Management expressed confidence in their positioning and ability to manage short-term challenges while focusing on long-term value creation [49] Question: Update on the energy efficiency program in Texas? - Management is working with the commission to clarify the rollout of the energy efficiency program tailored to specific service areas [58] Question: Timing for full general rate cases? - Management highlighted the recent rate case filed in the Rio Grande Valley service area as the main update [60]

Part I. Financial Information [Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) The company presents unaudited financial statements for Q2 and H1 2023, showing stable net income and total assets of $7.34 billion Consolidated Statements of Income Highlights (in thousands) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $398,114 | $428,975 | $1,430,257 | $1,400,434 | | Operating income | $64,022 | $58,569 | $213,252 | $199,326 | | Net income | $32,689 | $32,075 | $135,310 | $131,009 | | Diluted EPS | $0.58 | $0.59 | $2.42 | $2.42 | Consolidated Balance Sheets Highlights (in thousands) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total cash, cash equivalents and restricted cash | $39,338 | $18,127 | | Net property, plant and equipment | $5,856,628 | $5,628,840 | | Total assets | $7,335,122 | $7,776,396 | | Total long-term debt, excluding current maturities | $1,876,212 | $2,661,743 | | Total equity | $2,654,826 | $2,584,426 | Consolidated Statements of Cash Flows Highlights (Six Months Ended, in thousands) | Metric | June 30, 2023 | June 30, 2022 | | :--- | :--- | :--- | | Cash provided by operating activities | $748,742 | $286,677 | | Cash used in investing activities | ($321,416) | ($251,501) | | Cash used in financing activities | ($406,115) | ($36,643) | [Notes to Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details accounting policies, financing activities, and the impact of the Texas storm cost securitization - The company operates as a single reportable business segment, delivering natural gas to approximately **2.3 million customers**[29](index=29&type=chunk)[30](index=30&type=chunk) - In March 2023, the company received approximately **$197 million in net proceeds** from the securitization of extraordinary costs related to Winter Storm Uri in Texas[42](index=42&type=chunk) - The company entered into a forward sale agreement for **2.0 million shares** and has **$226.1 million available** for issuance under its at-the-market equity program[61](index=61&type=chunk)[62](index=62&type=chunk) - The reserve for Manufactured Gas Plant (MGP) site remediation was **$14.8 million** as of June 30, 2023[80](index=80&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) [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) Management analyzes financial results for H1 2023, highlighting increased operating income driven by new rates and key regulatory events Financial Results Summary (in millions) | Financial Results | Q2 2023 | Q2 2022 | Y/Y Change | H1 2023 | H1 2022 | Y/Y Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating income | $64.0 | $58.6 | $5.4 | $213.3 | $199.3 | $14.0 | | Capital expenditures | $190.2 | $149.1 | $41.1 | $354.8 | $272.0 | $82.8 | - The increase in operating income for Q2 2023 was primarily due to a **$14.1 million increase from new rates**, partially offset by a $6.7 million increase in employee-related costs[127](index=127&type=chunk) - For the first six months of 2023, operating income increased due to **$31.4 million from new rates**, partially offset by higher employee costs and bad debt expense[127](index=127&type=chunk) - Full-year 2023 capital expenditures and asset removal costs are expected to be approximately **$675 million**[134](index=134&type=chunk) [Regulatory Activities](index=28&type=section&id=REGULATORY%20ACTIVITIES) The company details recent regulatory outcomes, including rate increases in Oklahoma and Texas and storm cost recovery - Oklahoma Natural Gas implemented a **$26.3 million base rate revenue increase** in June 2023 following an approved settlement[109](index=109&type=chunk) - Texas Gas Service received approximately **$197 million in net proceeds** in March 2023 from the securitization of Winter Storm Uri costs[113](index=113&type=chunk) - Texas Gas Service implemented an **$11.5 million rate increase** in its Central-Gulf service area and a **$7.3 million increase** in its West-North service area[114](index=114&type=chunk)[115](index=115&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintains liquidity through a $1.0 billion credit facility and commercial paper, with a total debt-to-capital ratio of 52% - The company extended its **$1.0 billion revolving credit facility** maturity to March 16, 2028, with a total debt-to-capital ratio of **52%** as of June 30, 2023[142](index=142&type=chunk)[144](index=144&type=chunk) - The company has outstanding forward sale agreements for a total of **3,215,868 shares**, which could generate net proceeds of approximately **$248.7 million** upon settlement[156](index=156&type=chunk) Debt and Credit Ratings (as of June 30, 2023) | Item | Value | | :--- | :--- | | Commercial Paper Outstanding | $217.1 million | | Senior Notes Outstanding | $2.4 billion | | Credit Rating (Moody's) | A3 (Stable) | | Credit Rating (S&P) | A- (Stable) | [Cash Flow Analysis](index=38&type=section&id=CASH%20FLOW%20ANALYSIS) Operating cash flow increased significantly in H1 2023 due to Texas securitization, while investing and financing cash usage also grew Cash Flow Summary (Six Months Ended June 30, in millions) | Cash Flow Activity | 2023 | 2022 | Variance | | :--- | :--- | :--- | :--- | | Operating activities | $748.7 | $286.7 | $462.0 | | Investing activities | ($321.4) | ($251.5) | ($69.9) | | Financing activities | ($406.1) | ($36.7) | ($369.4) | - The significant increase in operating cash flow for H1 2023 was primarily due to the **recovery of the winter weather event regulatory asset** for Texas Gas Service through securitization[160](index=160&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include commodity prices, interest rates, and credit, which are managed through various mitigation strategies - Commodity price risk from natural gas price fluctuations is mitigated by passing costs to customers through **regulatory purchased-gas cost adjustment mechanisms**[184](index=184&type=chunk) - **Interest-rate risk** is associated with commercial paper, credit agreement borrowings, and new debt financing, and is managed through a mix of debt instruments[185](index=185&type=chunk) - **Counterparty credit risk is not considered material** due to a large customer base of approximately 2.3 million and established credit control measures[186](index=186&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls and procedures with no material changes to internal controls in Q2 2023 - The CEO and CFO have concluded that **disclosure controls and procedures were effective** as of the end of the reporting period, June 30, 2023[187](index=187&type=chunk) - **No changes in internal control over financial reporting** occurred during the second quarter of 2023 that have materially affected, or are reasonably likely to materially affect, internal controls[188](index=188&type=chunk) Part II. Other Information [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing legal proceedings from normal business operations are not expected to have a material adverse effect on the company - The company states that ongoing legal proceedings arising from normal operations are **not expected to have a material adverse effect** on its financial results, position, or cash flows[189](index=189&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the comprehensive risk factor disclosure in the company's Annual Report on Form 10-K - The report directs investors to the **Risk Factors section in the company's Annual Report** for a comprehensive discussion of risks affecting the business[190](index=190&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is reported as not applicable for the period - Not applicable[191](index=191&type=chunk) [Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is reported as not applicable for the period - Not applicable[192](index=192&type=chunk) [Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is reported as not applicable for the period - Not applicable[193](index=193&type=chunk) [Other Information](index=44&type=section&id=Item%205.%20Other%20Information) This item is reported as not applicable for the period - Not applicable[194](index=194&type=chunk) [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including SOX certifications and XBRL interactive data files - Lists filed exhibits, including officer certifications pursuant to **Sarbanes-Oxley Sections 302 and 906**, and XBRL data files[197](index=197&type=chunk)

Financial Data and Key Metrics Changes - Net income for the first quarter was $102.6 million or $1.84 per diluted share, compared to $98.9 million or $1.83 per diluted share in the same period of 2022, despite a 14.5% increase in weather warmth [9][10] - Operating income increased by $8.4 million or 6% year-over-year, driven by new rates from regulatory filings [28] - Average commercial paper balance decreased slightly, but the weighted average interest rate rose to 4.9% from 0.47% in Q1 2022 [11] Business Line Data and Key Metrics Changes - Operating and maintenance expenses rose by $11.6 million compared to Q1 2022, primarily due to employee-related costs and bad debt expenses [10] - Capital expenditures for the first quarter were approximately $165 million, up from $123 million in 2022 [30] Market Data and Key Metrics Changes - The company reported a significant increase in customer growth, with more than 50,000 future meter sets captured, representing a 10.7% increase year-over-year [57] - The average customer bill was reported at just under $75 before securitization charges [65] Company Strategy and Development Direction - The company is focused on executing its strategic plan, enhancing safety and reliability, and reducing emissions [24] - A new project in the Austin area aims to diversify the supply portfolio and improve storage capabilities [25] - The company is expanding its contracted storage capacity to meet winter demand and prepare for growth [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing the capital plan despite economic developments and inflationary pressures [17][52] - The company affirmed its 2023 financial guidance, projecting net income between $224 million and $238 million [54] Other Important Information - The completion of securitized financing in Texas marks the end of the securitization process across service territories, benefiting customers [8] - The company received recognition for having the lowest rate of significant injuries among peers for six consecutive years [37] Q&A Session Summary Question: Customer bill trajectory given lower natural gas prices - Management indicated that the average customer bill is just under $75 before securitization charges [65] Question: Impact of securitization on spending plans - Management clarified that capital spending decisions are driven by system needs and customer growth rather than securitization [42] Question: Thoughts on Texas legislative priorities - Management is monitoring several bills, including a statewide energy efficiency program, which they view positively for customers [45] Question: Future equity financing strategy - Management confirmed that forward sales will continue to be part of the equity financing strategy, alongside the new ATM program [72][86] Question: Update on regulatory filings in Oklahoma - Management confirmed that the annual performance-based rate change application is still active and anticipated to be completed later in the year [76] Question: Trends in operating and maintenance expenses - Management noted that strategic in-sourcing and inflation are contributing to the increase in O&M expenses [78]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2023. OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from __________ to __________. Commission file number 001-36108 ONE Gas, Inc. (Exact name of registrant as specified in its charter) Oklahoma 46-3561936 (State or other juri ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________. Commission file number 001-36108 ONE Gas, Inc. (Exact name of registrant as specified in its charter) Oklahoma 46-3561936 (State or other jurisdict ...

Financial Data and Key Metrics Changes - Net income for Q4 2022 was $67 million, or $1.23 per diluted share, compared to $60.5 million, or $1.12 per diluted share in Q4 2021, reflecting a year-over-year increase [19] - For the full year, net income was $221.7 million, or $4.08 per diluted share, versus $206.4 million, or $3.85 per diluted share in 2021, indicating a solid growth in profitability [20] - Operating income increased by approximately 13% or $39.7 million for the full year, driven by $58.7 million from new rates and $7 million from residential customer growth [20] Business Line Data and Key Metrics Changes - Operating costs for the year were $24.4 million higher than 2021, primarily due to increases in outside service costs and employee labor and benefits [9] - Capital expenditures for Q4 were $209.6 million, totaling $656.5 million for the year, compared to $544.3 million in 2021, with the increase attributed to system integrity projects and service extensions [9] Market Data and Key Metrics Changes - Average rate base for the year was $4.69 billion, with 42% in Oklahoma, 27% in Kansas, and 31% in Texas [29] - New customer connections in Texas grew roughly 3%, while Oklahoma saw a 17% increase, and Kansas jumped almost 22% compared to the prior year [24] Company Strategy and Development Direction - The company is focused on a disciplined phased approach to growth, managing current opportunities while positioning for long-term system expansion [40] - The recent approval of the West North Texas rate case is seen as a constructive outcome, recognizing the need for ongoing investments to enhance system integrity [26] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the company in facing challenges such as inflation and supply chain impacts, maintaining a focus on safety, customer service, and organic growth [44] - The company remains optimistic about future growth opportunities, supported by economic development in its service territories and a favorable energy landscape [51] Other Important Information - The company ended the year with $448 million of capacity under its $1 billion commercial paper program and no borrowings under its credit facility [10] - A dividend of $0.65 per share was declared in January, marking a 5% increase from the previous quarter [30] Q&A Session Summary Question: Can you quantify the improvement for working capital and short-term debt balance anticipated for year-end 2023? - Management indicated that lower gas costs would positively impact cash flow and working capital needs, but emphasized that gas prices are just one factor among many [50][57] Question: Are there similar projects in the pipeline that could manifest over the next 12 to 18 months? - Management confirmed ongoing success in securing new projects, with continued building activity in service territories, indicating a positive outlook for future growth [51][54] Question: How should we think about the backlog and its fulfillment timeline given the change in customer growth rates? - Management clarified that the backlog is growing, with ongoing demand for new connections, and emphasized the importance of separating short-term from long-term projects [54][74]

Financial Data and Key Metrics Changes - The company narrowed its 2022 net income guidance to a range of $217 million to $226 million, with earnings per diluted share of $4 to $4.16 [14] - For Q3 2022, net income was $23.7 million or $0.44 per diluted share, compared to $20.3 million or $0.38 per diluted share in the same period last year, reflecting a 16.7% increase in earnings [15] - Operating income increased by $5.3 million or 13% over the same period last year, driven by new rates and residential customer growth [15] - Operating costs rose by $9.4 million compared to Q3 2021, with significant increases in outside services and employee-related costs [16] - Interest expense increased by $4.2 million compared to Q3 2021, influenced by higher natural gas prices and increased working capital needs [17] Business Line Data and Key Metrics Changes - The company added nearly 20,000 new customer connections in the nine months ending September 30, a 16% increase compared to the same timeframe in 2021 [29] - New rates reflecting a $19.6 million revenue increase went into effect in July, with interim rates subject to final approval [25] Market Data and Key Metrics Changes - Building permits have declined from historic highs but remained resilient, with increased activity in major metropolitan areas [30] - The I-35 corridor from Kansas City to San Antonio is recognized as the fastest population and job growth region in the US [30] Company Strategy and Development Direction - The company is focused on customer affordability and managing costs amid decade-high inflation and geopolitical conflicts affecting natural gas prices [10] - There is a commitment to clean energy goals and the development of renewable natural gas (RNG) projects [31] - The company plans to file a voluntary RNG tariff in Oklahoma and explore similar options in other jurisdictions [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as inflation and supply chain disruptions but expressed confidence in completing the 2022 capital program and executing in 2023 [34] - The company remains optimistic about growth in Texas and Oklahoma, citing continued economic development and population influx [48][49] Other Important Information - The company executed forward sales agreements for approximately 570,000 shares of common stock, generating potential net proceeds of about $94 million [19] - The Board of Directors declared a dividend of $0.62 per share, unchanged from the previous quarter [23] Q&A Session Summary Question: Capital expenditures for 2022 - The company confirmed it remains on track to complete the $650 million capital expenditure target for 2022, with several large projects in progress [39] Question: Interest in unregulated RNG - Management expressed interest in participating in RNG projects as a means to connect generators with customers seeking lower carbon fuel, while maintaining focus on organic growth opportunities [42][43] Question: Pressure on customer bills - The company emphasized its efforts to help customers moderate usage and manage costs while maintaining a reliable and safe system [45][46] Question: Pace of housing development - Management remains confident in growth in Texas and Oklahoma, noting record connections made and continued economic development despite some signs of slowing in the housing market [47][48]

Financial Data and Key Metrics Changes - Net income for Q2 2022 was $32.1 million or $0.59 per diluted share, compared to $30.1 million or $0.56 per diluted share in Q2 2021, reflecting a year-over-year increase [11] - Operating income increased by $7.5 million or 15% over the same period last year, driven by new rates and residential customer growth [11][12] - Operating costs rose by $7.1 million compared to Q2 2021, with outside services accounting for $5.8 million of the increase [13] Business Line Data and Key Metrics Changes - The increase in operating income was primarily due to $14.4 million from new rates, largely resulting from regulatory filings completed in the previous year [12] - Continued residential customer growth in Oklahoma and Texas contributed an additional $1.5 million to operating income [12] Market Data and Key Metrics Changes - The authorized rate base was approximately $4.28 billion as of June 30, with an estimated average rate base of approximately $4.8 billion for 2022 [16] - The company added over 12,000 new customer connections in the first half of 2022, surpassing the approximately 11,000 added in the same period last year [33] Company Strategy and Development Direction - The company is focused on three targets: a strong safety culture, excellent customer service, and building capacity to respond to organic growth [6] - A stronger emphasis on ESG opportunities has been added to the company's commitments, with renewable natural gas (RNG) being integral to its emissions reduction strategy [8][34] - The company is actively managing costs and focusing on customer affordability amid rising inflation and gas prices [9][10] Management's Comments on Operating Environment and Future Outlook - Management expects economic conditions to remain challenging for the remainder of the year but is confident in the guidance range due to solid performance in the first half [24] - The company is committed to managing costs and executing its capital plan while addressing external factors like interest rates and inflation [24] Other Important Information - The Board of Directors declared a dividend of $0.62 per share, unchanged from the previous quarter [20] - The company is utilizing its at-the-market equity program to address future liquidity needs, having executed forward sale agreements for approximately 592,000 shares [18][19] Q&A Session Summary Question: Can you provide more color on the 2022 EPS guidance considering the nonqualified benefit plan and pension impacts? - Management clarified that the mark-to-market adjustments for nonqualified plans are not included in guidance, and the pension plan remeasurement will have a fixed impact of about $7 million for the remainder of the year [48][49] Question: What are the implications of El Paso's denial for the group rate increase? - Management indicated that the rates were allowed to take effect as the Commission deemed the filing proper, and the appeal process is ongoing [58] Question: Have inflation expectations changed, and how is O&M tracking? - Management stated that they have not gained more visibility on inflation but are focused on recognizing savings without compromising customer service [60][61] Question: How will one-time items be treated in the guidance? - Management noted that the impacts of mark-to-market and remeasurement for 2022 largely negate each other, and they do not plan to provide a non-GAAP earnings number [72]