ONE Gas Issues 2026 Financial Guidance

Core Viewpoint - ONE Gas, Inc. has provided financial guidance for 2026, projecting net income between $294 million and $302 million, with a diluted earnings per share of $4.65 to $4.77, while also raising its long-term earnings growth rate to 5% to 7% from the previous 4% to 6% [1][2][5]. 2026 Financial Guidance - The expected net income for 2026 is projected to be in the range of $294 million to $302 million, with a midpoint of $298 million [2][3]. - Earnings per diluted share are anticipated to be between $4.65 and $4.77, with a midpoint of $4.71 [2]. - The guidance reflects benefits from new rates and customer growth, offset by higher operating and depreciation expenses [3]. Capital Investments - Capital investments for 2026 are expected to be approximately $800 million, focusing on system integrity and replacement projects [4]. - An additional $230 million is earmarked for extensions to new customers, driven by growth opportunities in Texas and Oklahoma [4]. - The anticipated average rate base for 2026 is projected at $6.3 billion [4]. Five-Year Financial Growth Rates - For the five years ending in 2030, capital investments are expected to range from $800 million to $900 million annually, totaling approximately $4.3 billion, including $1.2 billion for growth capital [5]. - Average annual net income and diluted earnings per share are expected to increase by 7% to 9% and 5% to 7%, respectively, over the long term [6]. - Operating costs are projected to rise by approximately 3% to 4% per year, a decrease from the previously indicated 4% average annual increase [6]. Financing Needs - The company estimates total net long-term financing needs of approximately $1.3 billion from 2026 to 2030, with around 30% expected to be equity [7]. Dividend Growth - ONE Gas anticipates an average annual dividend growth rate of 1% to 2% through 2030, subject to board approval [9].