ONE Gas(US:OGS)2025-11-04 21:05Financial Performance - Net income for the three months ended September 30, 2025, was $26,466,000, compared to $19,268,000 for the same period in 2024, representing an increase of 37.0%[19] - For the nine months ended September 30, 2025, net income was $177,918,000, up from $145,828,000 in 2024, reflecting a growth of 21.9%[19] - ONE Gas reported net income of $119.4 million for the three months ended March 31, 2025, compared to $99.3 million for the same period in 2024, representing a 20.3% increase[37] - For the three months ended September 30, 2025, the net income available for common stock was $26.466 million, resulting in a basic EPS of $0.44, compared to $19.268 million and $0.34 for the same period in 2024, representing a 37.5% increase in net income[64] - For the nine months ended September 30, 2025, the net income available for common stock was $177.918 million, leading to a basic EPS of $2.96, up from $145.828 million and $2.57 in the same period of 2024, indicating a 21.9% increase in net income[64] Revenue and Sales - Total revenues for the nine months ended September 30, 2025, were $1.738 billion, up from $1.453 billion for the same period in 2024, reflecting an increase of 19.7%[37] - Natural gas sales to customers for the three months ended September 30, 2025, were $327.0 million, compared to $289.2 million for the same period in 2024, a growth of 13.1%[37] Assets and Liabilities - Total assets as of September 30, 2025, amounted to $8,504,274,000, compared to $8,425,571,000 as of December 31, 2024, indicating an increase of 0.9%[21] - The company reported a decrease in accounts receivable, net, to $210,173,000 as of September 30, 2025, from $408,448,000 as of December 31, 2024, a reduction of 48.7%[21] - The total current liabilities as of September 30, 2025, were $1,453,934,000, slightly down from $1,458,276,000 as of December 31, 2024, a decrease of 0.3%[23] - Total equity as of September 30, 2025, was $3,182,376,000, up from $3,104,548,000 as of December 31, 2024, representing a growth of 2.5%[23] - The total long-term debt, net, increased to $2,635.78 million as of September 30, 2025, compared to $2,414.26 million as of December 31, 2024[52] Cash Flow and Expenditures - Cash provided by operating activities for the nine months ended September 30, 2025, was $535,818,000, compared to $305,781,000 in 2024, showing a significant increase of 75.0%[25] - Capital expenditures for the nine months ended September 30, 2025, totaled $539,433,000, compared to $523,590,000 in 2024, reflecting an increase of 3.0%[25] - The company’s cash, cash equivalents, and restricted cash at the end of the period were $20,785,000, down from $78,537,000 at the beginning of the period, a decline of 73.5%[25] Dividends - The company paid dividends totaling $120,505,000 for the nine months ended September 30, 2025, compared to $112,064,000 in 2024, an increase of 7.5%[25] - The company issued common stock dividends of $0.67 per share, totaling $40.2 million for the three months ended September 30, 2025[37] - The company declared a dividend of $0.67 per share in November 2025, equating to an annualized rate of $2.68 per share[60] Regulatory and Risk Management - The allowance for doubtful accounts was $11.9 million as of September 30, 2025, down from $14.9 million at the end of 2024, indicating improved credit risk management[33] - The company maintains a provision for doubtful accounts based on credit risk assessments, with approximately 2.3 million customers across three states, mitigating concentration of credit risk[181] - The company is subject to various regulatory initiatives that may impact future earnings potential, as detailed in the "Regulatory Activities" section of the financial report[86] - The company utilizes purchased-gas cost adjustment mechanisms to pass through natural gas costs to customers, which helps mitigate commodity price risk[179] Pension and Other Benefits - The net periodic benefit cost for pension benefits for the three months ended September 30, 2025, was $1.427 million, compared to a credit of $(1.386) million in 2024, reflecting a significant change in costs[65] - The company transferred approximately $41.6 million of assets and liabilities related to certain participants in its defined benefit pension plan to a third-party insurance company in August 2025[69] - The company’s obligations under the nonqualified deferred compensation plan were $21.1 million at September 30, 2025, an increase from $18.9 million at December 31, 2024[70] Derivative Instruments and Financial Instruments - The company has not designated any of its derivative instruments as accounting hedges, and these contracts are recoverable through purchased-gas cost adjustment mechanisms[94] - The fair value of derivative instruments - swaps was $6.921 million as of September 30, 2025, compared to $3.213 million at December 31, 2024[97] - The company held over-the-counter natural gas fixed-price swaps with a total notional amount of 7.65 Bcf for the heating season ending March 2026, compared to 6.20 Bcf for the heating season ending March 2025[92] - The company paid premiums of $0.8 million for purchased natural gas call options with a total notional amount of 0.80 Bcf for the heating season ending March 2026, up from $0.6 million for 0.60 Bcf for the previous season[93]