ONE Gas (OGS) to Gain From Regulated Operations & Investments

Core Viewpoint - ONE Gas, Inc. (OGS) is expected to enhance its performance through strategic capital expenditures focused on pipeline integrity and service expansion, benefiting from its 100% regulated operations and a high percentage of residential customers [1][3]. Group 1: Capital Expenditures - ONE Gas anticipates capital expenditures, including asset removal costs, to reach nearly $750 million in 2024, with a total of $4.25 billion planned through 2028, of which nearly $3 billion will be allocated to system integrity and replacement projects [2]. Group 2: Customer Base and Growth - The company has a strong customer base, with over 93% being residential customers, providing stability and visibility for future earnings. It has consistently increased its customer base since 2015 and expects an average annual growth of 0.9% from 2024 to 2028, having added approximately 5,200 new customer connections in Q1 2024 [3][4]. Group 3: Seasonal and Competitive Challenges - The natural gas sales to residential and commercial customers are subject to seasonality, with demand potentially impacted by warmer-than-expected winters. Additionally, the company faces strong competition in the natural gas industry, requiring it to maintain customer loyalty and service reliability [5]. Group 4: Price Performance - Over the past three months, ONE Gas shares have increased by 2%, while the industry has seen a growth of 6% [6].