ONE Gas to Benefit From Regulated Operations & Strategic Investments

Core Viewpoint - ONE Gas, Inc. (OGS) is positioned to benefit from strategic capital expenditures and a high percentage of regulated operations, although it faces challenges from seasonality and competition in the clean energy sector [1][5][6] Group 1: Investment and Growth - OGS invested $703.2 million in 2024 and plans to invest $750 million in 2025, focusing on pipeline integrity, service extension, system capacity increase, and technology upgrades [2][8] - New rates implemented in Oklahoma, Kansas, and Texas are expected to enhance annual revenues, with pending rate cases likely to further boost the top line [3][8] - The company's supply assets are strategically located near gas reserves, leading to lower transportation and storage costs, providing a competitive edge [3][8] Group 2: Customer Base and Stability - OGS operates as a 100% regulated natural gas distribution utility, with over 92% of its customers being residential, which ensures stability and visibility of future earnings [4][8] - The company has seen an increase in customer additions, supported by improving economic conditions in its service areas [4] Group 3: Challenges - The demand for natural gas is seasonal, peaking from November to March, which can adversely affect profitability if winter weather is warmer than expected [5] - OGS faces strong competition in the natural gas industry, requiring it to maintain customer loyalty and service reliability [6] Group 4: Stock Performance - Over the past six months, OGS shares have increased by 3.5%, contrasting with a 2.1% decline in the industry [7]