ONE Gas(US:OGS) ZACKSยท2025-08-12 13:21Core 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]