Financial Performance - 2017 - Earnings from continuing operations increased from $232.4 million in 2016 to $284.2 million in 2017[10], which includes a $39.5 million benefit from tax reform[11] - Consolidated earnings increased from $63.7 million in 2016 to $280.4 million in 2017[13], including a $39.5 million benefit from tax reform[14] - Construction Services reported earnings of $53.3 million in 2017[22], including a $4.3 million income tax benefit[23], and record revenues of $1.37 billion[23] - Construction Materials reported earnings of $123.4 million in 2017[25], including a $41.9 million income tax benefit[26] Segment Performance - 2017 - Electric & Natural Gas Utility reported earnings of $81.6 million[17], including a $6.4 million charge from tax reform[17], with increased retail sales volumes for both electric (2%)[17] and natural gas (13%)[17] - Pipeline & Midstream reported earnings of $20.5 million[20], including a $200,000 charge from tax reform[20], reflecting the sale of Pronghorn assets in January 2017[20] Outlook and Guidance - 2018 EPS guidance is projected to be in the range of $1.25 to $1.45[43] - Construction Services anticipates 2018 revenues between $1.45 billion and $1.60 billion[39] - Construction Materials anticipates 2018 revenues between $1.8 billion and $1.9 billion[42] Capital Program and Dividends - The company's total capital forecast for 2018-2022 is $2.323 billion[46], allocated to Utility ($1.508 billion), Construction ($466 million), and Pipeline & Midstream ($349 million)[46] - The company has increased its dividend for 27 consecutive years[50] and has made dividend payments for 80 consecutive years[49, 50]

Core Insights - Southern Company's subsidiaries, Virginia Natural Gas and Chattanooga Gas, have made significant renewable natural gas (RNG) purchases, aiming to reduce carbon emissions and enhance energy sustainability [1][8] - The RNG purchases are projected to prevent approximately 18,978 metric tons of CO2 equivalent emissions, equivalent to the carbon absorption of nearly 19,036 acres of U.S. forest in a year [1][10] Renewable Natural Gas Overview - Renewable natural gas is produced by capturing methane emissions from decomposing organic materials, significantly lowering overall greenhouse gas emissions [2][11] - RNG's compatibility with existing natural gas infrastructure allows utilities to reduce their carbon footprint without major equipment changes [2][12] Strategic Commitment to Clean Energy - Southern Company Gas is committed to achieving net-zero direct greenhouse gas emissions from operations by 2050, as stated by executive vice president Bryan Batson [3][14] - The recent RNG transactions reflect a consistent commitment to cleaner energy alternatives, setting an example for other utilities [4][13] Policy Support for RNG Growth - Legislative frameworks in Virginia and Tennessee, such as the Virginia Energy Innovation Act and the Natural Gas Innovation Act, support the development and integration of RNG [5][6] - These policies enable utilities to recover costs associated with innovative natural gas solutions, facilitating investments in RNG [6] Collaborative Efforts and Future Projects - Virginia Natural Gas is collaborating with the Hampton Roads Sanitation District to convert biogas from organic waste into RNG for local distribution [7][9] - This initiative exemplifies the potential of transforming organic waste into a clean energy resource while reducing methane emissions [9] Environmental Impact - The environmental benefits of RNG purchases are substantial, with the potential to significantly reduce greenhouse gas emissions and contribute to climate change mitigation [10][11] - Capturing methane and repurposing it into RNG is a key strategy for utilities transitioning away from fossil fuels while maintaining energy reliability [11] Seamless Transition to Sustainable Energy - RNG's compatibility with existing infrastructure allows customers to benefit from cleaner fuel without needing to replace appliances or modify pipelines, facilitating widespread adoption [12] - Continued investment in RNG positions Southern Company's subsidiaries as leaders in natural gas innovation and sustainability [13][15] Future Outlook - Southern Company's RNG purchases signal a strategic shift towards sustainable energy portfolios that prioritize environmental impact while ensuring service reliability [14][16] - The proactive approach to RNG demonstrates the potential for renewable natural gas to transform the energy landscape and set benchmarks for utilities nationwide [16]

Company Overview - ONE Gas, Inc. is a 100-percent regulated natural gas utility and trades on the New York Stock Exchange under the symbol "OGS" [2] - The company is included in the S&P MidCap 400 Index and is one of the largest natural gas utilities in the United States [2] - Headquartered in Tulsa, Oklahoma, ONE Gas provides reliable and affordable energy to over 2.3 million customers in Kansas, Oklahoma, and Texas [3] Divisions and Market Position - ONE Gas operates through three divisions: Kansas Gas Service (largest in Kansas), Oklahoma Natural Gas (largest in Oklahoma), and Texas Gas Service (third largest in Texas by customer count) [3] Upcoming Events - ONE Gas will participate in the Mizuho Mid-Cap Utilities Conference on June 5, 2025, in New York City [1] - The conference will feature meetings with members of the investment community conducted by Robert S. McAnnally (CEO) and Christopher Sighinolfi (CFO) [1]

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $1.3, a 6% increase compared to the same quarter last year [5] - Revenues increased by 28% from $612.1 million to $783.6 million year-over-year [22][23] - The company reaffirmed its 2025 earnings per share guidance range of $2.07 to $2.11, compared to last year's $1.97 on a non-GAAP basis [6] Business Line Data and Key Metrics Changes - Both the Water and Gas businesses performed well, contributing to the overall strong results [5] - The Gas segment reported an increase in volumes due to normal weather conditions compared to significantly warmer weather in the previous year [23] Market Data and Key Metrics Changes - The company has begun to raise equity through its ATM program, issuing approximately $210 million so far this year [6] - The company expects to receive approximately $100 million in proceeds from settlements with polluters [9] Company Strategy and Development Direction - The company plans to invest between $1.4 billion and $1.5 billion in infrastructure improvements in 2025 [6] - The company is focusing on water and wastewater utility acquisitions, having acquired over $518 million in rate base since 2015 [31] - The company is actively working on PFAS compliance and expects to meet the $450 million capital spend rate to achieve compliance by 2028 [9][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the full-year earnings per share guidance, citing strong first-quarter performance but cautioning about potential headwinds in the remaining quarters [52] - The company is optimistic about the legislative developments in Texas and Ohio that could positively impact rate cases [10][11] Other Important Information - The company has been recognized for its environmental stewardship, being named to USA TODAY's list of climate leaders for three consecutive years [9] - The company is exploring opportunities related to data center development and on-site power generation, representing up to five gigawatts of needed power generation in the Pittsburgh region [20] Q&A Session Summary Question: Equity issuance and market conditions - Management indicated that they are focused on raising the remaining $315 million in equity for 2025 and will consider market conditions for further issuance [40][41] Question: Texas rate case expectations - Management stated that they plan to file the Texas rate case by the end of the month and expect it to be consistent with other states [42][44] Question: EPS guidance and performance - Management acknowledged strong first-quarter performance but emphasized the need to wait for clarity as the year progresses before adjusting guidance [50][52] Question: PFAS operational strategy - Management confirmed that they are proceeding with their PFAS mitigation strategy and remain on track with their budget [55][56] Question: Data center opportunities - Management discussed various approaches to support data center development, including behind-the-meter generation and increased distribution volume [64][66] Question: Beaver Falls case timeline - Management expects the Beaver Falls case to be on the agenda in June and remains hopeful for a favorable outcome [90]

Financial Data and Key Metrics Changes - The company reported record net income for the first quarter of 2025, with a trailing twelve-month return on equity (ROE) of 8.2% [9][10] - The net income guidance for the full year is reaffirmed at $265 million to $275 million [35] - Operating margin increased by $38.9 million, driven by $27 million of combined rate relief and customer growth [27][30] Business Line Data and Key Metrics Changes - The utility segment benefited from rate relief in Nevada and Arizona, contributing to higher net income [25] - Approximately 40,000 new meter sets were added over the past twelve months, indicating strong customer growth [27][22] - Century's results improved due to higher volumes under master services agreements and lower interest expenses, although offshore wind project revenues decreased [26] Market Data and Key Metrics Changes - Economic activity and demand for natural gas service remain strong, particularly in Arizona and Nevada, with significant growth in sectors like advanced manufacturing and data centers [21][22] - The Arizona Commission opened a docket to address resource adequacy of natural gas infrastructure due to increased demand [22] Company Strategy and Development Direction - The company is focused on becoming a premier fully regulated natural gas utility and is committed to separating Century to enhance shareholder value [10][11] - A capital investment plan of approximately $4.3 billion over the next five years is expected to support safety, reliability, and economic development [24] - The company aims to maintain a flat O&M cost per customer trend while achieving net income growth through regulatory strategies [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the regulatory strategy and the positive outcomes from recent rate cases in Arizona and Great Basin [10][18] - The company anticipates continued robust capital spending driven by safety, reliability, and economic activity in service territories [9][35] - Management noted that the successful execution of separation options for Century is contingent on favorable market conditions [12] Other Important Information - The company has over $400 million in cash on hand and more than $1 billion in liquidity, providing flexibility for capital investments [13] - The balance sheet remains strong, with a commitment to maintaining an investment-grade profile [33][34] Q&A Session Summary Question: What is the current status of your plans to exit Century? - Management reiterated their commitment to the separation of Century and mentioned the ability to file an S-three to facilitate market execution [42] Question: What are the financial implications of the SIM if the settlement is approved? - Management indicated that clarity on timing and projects would come once the SIM is approved, which represents about 40% of non-revenue producing infrastructure investment [43] Question: Has there been any change to Southwest Gas' internal controls or accounting processes? - Management confirmed that there have been no changes in internal controls related to the recent accounting issue that caused a delay in the earnings call [46] Question: Can you speak to the incremental CapEx investment opportunities from the influx of data centers? - Management stated that current guidance does not include material changes due to new demand but will monitor and adjust as necessary [49] Question: Is the Great Basin open season binding? - Management confirmed that the open season is binding and will provide better indications of future CapEx changes once it closes [53]

Financial Data and Key Metrics Changes - The company reported record net income for the first quarter of 2025, with a trailing twelve-month return on equity (ROE) of 8.2% [9][10] - Net income for the utility Southwest Gas increased by over $7 million or 5.2% compared to the first quarter of the previous year [30] - The utility operating margin increased by $38.9 million, driven by $27 million of combined rate relief across jurisdictions and customer growth [27] Business Line Data and Key Metrics Changes - Century's results benefited from higher volumes under master services agreements and storm-related activity, although there was a reduction in offshore wind project revenues compared to the prior year [26] - The utility saw approximately 40,000 new meter sets added over the past twelve months, contributing to customer growth [27][22] Market Data and Key Metrics Changes - Economic activity and demand for natural gas service remain strong, particularly in Arizona and Nevada, with significant growth in sectors such as advanced manufacturing and data centers [21][22] - Population growth projections for Arizona and Nevada are expected to outpace the national average over the next five years, driving demand for new gas service [23] Company Strategy and Development Direction - The company is focused on becoming a premier fully regulated natural gas utility and is committed to separating Century in a manner beneficial to stockholders [10][11] - The company plans to invest approximately $4.3 billion over the next five years to support safety, reliability, and economic development across its service territory [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaffirming the net income guidance range of $265 million to $275 million for 2025, supported by strong regional economic outlook and completed rate cases [35] - The company aims to maintain a flat O&M cost per customer trend while navigating regulatory cycles that may impact net income growth [35] Other Important Information - The company has over $400 million in cash on hand and more than $1 billion in liquidity, providing flexibility for capital investments [13] - The company is pursuing a binding open season for potential system expansion in Great Basin, which will help gauge interest from existing and potential new shippers [16] Q&A Session Summary Question: What is the current status of your plans to exit Century? - Management reiterated their commitment to the separation of Century and mentioned the ability to file an S-three to facilitate market execution [42] Question: What are the financial implications of the SIM if the settlement is approved? - Management indicated that clarity on timing and projects would come once the SIM is approved, which represents about 40% of non-revenue producing infrastructure investment [43] Question: Has there been any change to Southwest Gas' internal controls or accounting processes? - Management confirmed that there have been no changes in internal controls related to the recent accounting issue that caused a delay in the earnings call [47] Question: Can you speak to the incremental CapEx investment opportunities from the influx of data centers? - Management stated that current guidance has not changed significantly due to the new demand, but they will monitor and adjust as necessary [50] Question: Is the Great Basin open season binding, and what CapEx is associated with it? - Management confirmed that the open season is binding and will provide better indications of future CapEx changes once it closes [54]

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $1.3, a 6% increase compared to the same quarter last year [6] - Revenues increased by 28% from $612.1 million to $783.6 million year-over-year [24] - The company reaffirmed its 2025 earnings per share guidance range of $2.07 to $2.11, compared to last year's non-GAAP earnings of $1.97 per share [7] Business Line Data and Key Metrics Changes - Both the Water and Gas businesses performed well, contributing to the overall strong results [6] - The Gas segment reported an increase in volumes due to normal weather conditions compared to significantly warmer weather in the previous year [24] Market Data and Key Metrics Changes - The company has begun to raise equity through its ATM program, issuing approximately $210 million so far this year [8] - The company is in discussions with data center developers representing up to five gigawatts of needed power generation in the Pittsburgh region [21] Company Strategy and Development Direction - The company plans to invest between $1.4 billion and $1.5 billion in infrastructure improvements in 2025, with $270.5 million already invested by March 31 [7] - The company is focusing on water and wastewater utility acquisitions, having acquired over $518 million in rate base since 2015 [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the full-year earnings per share guidance, citing strong first-quarter performance but cautioning about potential headwinds in the remaining quarters [52] - The company is committed to addressing PFAS compliance and expects to spend approximately $450 million to achieve compliance by 2028 [10][56] Other Important Information - The company has been recognized for its operational achievements, including a 99.8% water quality compliance rate [9] - New rates went into effect for Aqua Pennsylvania, expected to increase total annual revenues by $73 million [31] Q&A Session Summary Question: Regarding equity issuance and share price - Management indicated that the focus is on raising the $315 million in equity needed for 2025 rather than considering 2026 equity needs at this time [43] Question: Texas rate case expectations - Management stated that they plan to file the Texas rate case by the end of the month and will provide details on revenue requests and equity layers at that time [45] Question: EPS guidance and performance - Management acknowledged strong first-quarter performance but emphasized the need to wait for clarity as the year progresses before adjusting guidance [52] Question: Impact of EPA announcement on PFAS - Management confirmed that they are proceeding with their PFAS mitigation plans and remain on track with their budget [56] Question: Data centers and gas supply - Management discussed various approaches to support data center development, including behind-the-meter generation and increased distribution volume [65] Question: Beaver Falls settlement status - Management expressed optimism about the Beaver Falls case being on the agenda in June and highlighted the importance of resolving such cases for water supply [90]

Core Viewpoint - ONE Gas, Inc. has announced a public offering of 2,500,000 shares of its common stock, aiming for gross proceeds of approximately $197.5 million, with the offering expected to close on May 12, 2025 [1][4]. Group 1: Offering Details - The public offering is priced at approximately $197,500,000, assuming no additional shares are purchased by the underwriter [1]. - ONE Gas has granted the underwriter an option to purchase up to 375,000 additional shares [1]. - The forward sale agreement involves selling 2,500,000 shares, with a potential increase to 2,875,000 shares if the underwriter's option is fully exercised [3]. Group 2: Financial Implications - ONE Gas will not initially receive proceeds from the forward sale unless it is required to sell shares directly to the underwriter [4]. - The company intends to use any net proceeds for general corporate purposes, including debt repayment, working capital, and capital expenditures [4]. Group 3: Company Overview - ONE Gas is a regulated natural gas utility, trading under the symbol "OGS" on the New York Stock Exchange [7]. - The company serves over 2.3 million customers across Kansas, Oklahoma, and Texas, with divisions including Kansas Gas Service, Oklahoma Natural Gas, and Texas Gas Service [8].

Group 1 - ONE Gas, Inc. plans to make a public offering of 2,500,000 shares of its common stock [1][3] - The offering includes an option for the underwriter to purchase up to an additional 375,000 shares [1][3] - J.P. Morgan Securities LLC is acting as the sole underwriter for the offering [2] Group 2 - The forward sale agreement allows ONE Gas to sell shares at a price equal to the underwriter's purchase price [3] - Settlement of the forward sale agreement is expected to occur no later than December 31, 2026 [3] - ONE Gas may elect cash settlement or net share settlement for its obligations under the forward sale agreement [4] Group 3 - Proceeds from the offering will be used for general corporate purposes, including debt repayment and capital expenditures [4] - ONE Gas is a regulated natural gas utility serving over 2.3 million customers in Kansas, Oklahoma, and Texas [7][8] - The company operates divisions including Kansas Gas Service, Oklahoma Natural Gas, and Texas Gas Service [8]

Financial Performance - The company's net income for Q1 2025 was $27.5 million, or $1.69 per share[8] - Adjusted net income for Q1 2025 was $28.4 million, or $1.74 per share, an increase of $1.2 million or $0.05 per share compared to 2024[8] - The company reaffirms its 2025 earnings guidance to be in the range of $3.01 to $3.17[55] Acquisitions and Growth - The company completed the acquisition of Bangor Natural Gas ("BNG") in January 2025, adding approximately 8,730 customers[8, 36] - The company announced the acquisition of Maine Natural Gas ("MNG") in April 2025 for approximately $86 million, expected to close by the end of the year, adding approximately 6,300 customers[8, 11] - The company announced the acquisition of three water utilities (Aquarion Water (MA & NH) and Abenaki Water (NH)) on May 6, 2025, for an enterprise value of $100 million, including approximately $30 million of debt[8, 18] Rate Base and Capital Investment - The company expects a long-term rate base growth of 6.5% - 8.5%[8] - The company's five-year projected capital investment is approximately $980 million, 46% higher than the prior five years[48] Natural Gas Operations - The company has 86,600 natural gas customers[3, 8, 59, 63, 64, 65, 66, 76, 79, 81] - Adjusted gross margin for gas operations increased by 16.2%, or $9.9 million, reflecting higher rates and customer growth[36, 37]