ONE Gas(US:OGS)2024-02-22 18:19Financial Data and Key Metrics Changes - Net income for Q4 2023 was $71 million or $1.27 per diluted share, compared to $67 million and $1.23 in Q4 2022, reflecting a year-over-year increase [27] - Full year net income was $231 million or $4.14 per diluted share, up from $222 million or $4.08 in 2022 [27] - Fourth quarter revenues increased by $15.6 million from new rates and $1.9 million from customer base growth [28] - Operating and maintenance (O&M) expenses were 6.6% higher than the previous year, with expectations of a 5% annual growth through 2028 [28] Business Line Data and Key Metrics Changes - Capital expenditures for Q4 were $190 million, totaling $729 million for the year, an increase from $657 million in 2022, primarily due to system integrity projects [30] - The company added over 23,000 new connections in 2023, continuing healthy customer growth [34] Market Data and Key Metrics Changes - The company ended the year with approximately $1.1 billion of capacity under its $1.2 billion commercial paper program and no borrowings under its credit facility [14] - S&P affirmed its A- credit rating and stable outlook, while Moody's affirmed its A3 rating and stable outlook [15] Company Strategy and Development Direction - The company plans to continue focusing on safety, operational execution, and long-term value creation for stakeholders [46] - Strategic investments have been made in system reinforcement projects to enhance reliability, particularly following lessons learned from past winter storms [19][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by macroeconomic conditions but emphasized that their guidance does not rely on potential interest rate cuts in 2024 [16] - The company is preparing to file a full rate case in Kansas, anticipating a focus on capturing financial realities in rates [33][37] Other Important Information - The company has approximately $225 million of equity available for issuance under its at-the-market equity program [31] - The average rate base for 2024 is estimated to be approximately $5.55 billion [30] Q&A Session Summary Question: Insights on Kansas rate case and refinancing upcoming debt - Management indicated that they anticipate rolling the upcoming $473 million note onto commercial paper initially and then terming it out later in the year, depending on interest rate movements [48] Question: Details on the upcoming rate case filing - Management stated they are preparing to file the rate case and will provide more details in the upcoming weeks [22]