ONE Gas(US:OGS)2023-05-02 21:12Financial Data and Key Metrics Changes - Net income for the first quarter was $102.6 million or $1.84 per diluted share, compared to $98.9 million or $1.83 per diluted share in the same period of 2022, despite a 14.5% increase in weather warmth [9][10] - Operating income increased by $8.4 million or 6% year-over-year, driven by new rates from regulatory filings [28] - Average commercial paper balance decreased slightly, but the weighted average interest rate rose to 4.9% from 0.47% in Q1 2022 [11] Business Line Data and Key Metrics Changes - Operating and maintenance expenses rose by $11.6 million compared to Q1 2022, primarily due to employee-related costs and bad debt expenses [10] - Capital expenditures for the first quarter were approximately $165 million, up from $123 million in 2022 [30] Market Data and Key Metrics Changes - The company reported a significant increase in customer growth, with more than 50,000 future meter sets captured, representing a 10.7% increase year-over-year [57] - The average customer bill was reported at just under $75 before securitization charges [65] Company Strategy and Development Direction - The company is focused on executing its strategic plan, enhancing safety and reliability, and reducing emissions [24] - A new project in the Austin area aims to diversify the supply portfolio and improve storage capabilities [25] - The company is expanding its contracted storage capacity to meet winter demand and prepare for growth [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing the capital plan despite economic developments and inflationary pressures [17][52] - The company affirmed its 2023 financial guidance, projecting net income between $224 million and $238 million [54] Other Important Information - The completion of securitized financing in Texas marks the end of the securitization process across service territories, benefiting customers [8] - The company received recognition for having the lowest rate of significant injuries among peers for six consecutive years [37] Q&A Session Summary Question: Customer bill trajectory given lower natural gas prices - Management indicated that the average customer bill is just under $75 before securitization charges [65] Question: Impact of securitization on spending plans - Management clarified that capital spending decisions are driven by system needs and customer growth rather than securitization [42] Question: Thoughts on Texas legislative priorities - Management is monitoring several bills, including a statewide energy efficiency program, which they view positively for customers [45] Question: Future equity financing strategy - Management confirmed that forward sales will continue to be part of the equity financing strategy, alongside the new ATM program [72][86] Question: Update on regulatory filings in Oklahoma - Management confirmed that the annual performance-based rate change application is still active and anticipated to be completed later in the year [76] Question: Trends in operating and maintenance expenses - Management noted that strategic in-sourcing and inflation are contributing to the increase in O&M expenses [78]