ONE Gas(US:OGS)2025-12-02 14:02ONE Gas (NYSE:OGS) Financial Guidance Conference Call Summary Company Overview - Company: ONE Gas - Event: 2026 Financial Guidance Conference Call - Date: December 02, 2025 Key Points Financial Outlook - Earnings Per Share (EPS) Growth: Long-term EPS growth outlook increased to 5% to 7% [4][7] - 2026 Net Income Projection: Expected to range from $294 million to $302 million, with EPS of $4.65 to $4.77, representing an approximate 8% increase over 2025 guidance [7] - Five-Year Capital Investment: Projected at approximately $4.3 billion, supporting a 7% to 9% compound annual rate base growth [8][9] Strategic Initiatives - Infrastructure Expansion: Focus on large load demand opportunities across a three-state footprint, enhancing infrastructure while minimizing capital risk [5][4] - Safety and System Integrity: Central to the company's strategy, with a planned investment of $800 million in capital for 2026, which is $50 million more than the 2025 plan [8][10] Regulatory Updates - Texas Rate Case: A partial settlement reached with a $15 million revenue increase and a 9.8% return on equity [13] - Oklahoma Rate Case: Next full rate case planned for 2027 [14] Operational Efficiency - Operating and Maintenance (O&M) Expenses: CAGR reduced to 3% to 4%, down from 4% due to successful in-sourcing of positions [14] - Customer Growth: Anticipated continued demand for natural gas driven by residential housing growth and economic development [15] Capital Deployment and Financing - Equity Financing Needs: Expected to decrease by roughly 35% as the company transitions to a more self-funded model [9][10] - Dividend Growth: Anticipated compound annual dividend growth rate of 1% to 2% through 2030, subject to Board approval [12] Project Opportunities - Natural Gas Supply Projects: Engaging in projects to supply natural gas for significant electric generation needs, including a project for 100 megawatts of on-site generation and another for up to 1.3 gigawatts [16][17] - Customer-Funded Projects: Many projects are either fully or partially funded by customers, reducing financial strain on the company [36] Market Conditions - Interest Rate Impact: The company benefits from a reduction in the Fed funds rate, which lowers the cost of commercial paper borrowings [11] - Balance Sheet Strength: Maintains a healthy balance sheet with an adjusted CFO to debt ratio expected to improve from approximately 19% to 20% by 2030 [11] Closing Remarks - Commitment to Stakeholders: The company emphasizes its commitment to creating value for stakeholders while maintaining affordability and safety for customers [19] Additional Insights - Forward-Looking Statements: The call included forward-looking statements covered by Safe Harbor provisions, indicating potential risks and uncertainties [2][3] - Market Engagement: The company plans to attend several industry conferences, indicating ongoing engagement with investors and stakeholders [50]