One Gas, Inc. · NYSE:OGS
One Gas — Investor Presentation (January 2022)
16 slides from One Gas's investor presentation, Jan 18, 2022
Slide 1: 2022 Financial Guidance
Resilient and Reliable Energy For a Better Tomorrow January 18, 2022 2022 FINANCIAL GUIDANCE
Slide 2: Forward-Looking Statements
FORWARD LOOKING STATEMENTS| 2 Forward-Looking Statements Statements contained in this presentation that include or refer to Company expectations, our business outlook, our future plans or predictions relating to any matters should be considered forward-looking statements that are covered by the safe
Slide 3: Financial Outlook
| FINANCIAL OUTLOOK G ONE Gas
Slide 4: Five-Year Financial Highlights
FINANCIAL OUTLOOK | 4 Five-Year Financial Highlights Capital Investments & Rate Base • Capital investments of approximately $3.5 billion, a 19% increase over previous five-year plan – Continued investment in system integrity and replacement projects, representing more than 65% of annual capital inve
Slide 5: 2022 Guidance Summary
FINANCIAL OUTLOOK | 5 ** Represents midpoint of guidance range as of Jan. 18, 2022 * For definition of average rate base, see Appendix 2022 Guidance Summary • Net income range of $215 ‒ $227 million • EPS range of $3.96 ‒ $4.20 per diluted share • Estimated average rate base* of $4.64 billion – Incl
Slide 6: Growing Dividends
FINANCIAL OUTLOOK | 6 Growing Dividends • Quarterly Dividend – 62 cents per share in 2022* • Target annual payout ratio – 55 to 65% of net income Building Shareholder Value $1.84 $2.00 $2.16 $2.32 $2.48* 2018 2019 2020 2021 2022G DIVIDENDS & PAYOUT RATIO 57% 57% 59% 60%** 61%** * Subject to board ap
Slide 7: Financing Requirements
FINANCIAL OUTLOOK | 7 Financing Requirements • Dividends and capital investments primarily funded by cash flow from operations • ~$1.6 billion net financing needs through 2026, of which ~ 25% is expected to be equity issuances – $215 million remaining and available for issuance under the existing AT
Slide 8: Capital Investments & Rate Base
CAPITAL INVESTMENTS & RATE BASE
Slide 9: Well-Defined Capital Investment Plan
CAPITAL INVESTMENTS & RATE BASE | 9 $317 $339 $360 $380 $435 $99 $110 $135 $140 $190 $26 $21 $20 $20 $25 $158 $178 $191 $201 $213 2018 2019 2020 2021G 2022G CAPITAL INVESTMENTS (MILLIONS) System Integrity Customer Growth Other/IT Depreciation $442 $470 $515 ~$540 ~$650 Well-Defined Capital Investmen
Slide 10: Capital Investments Spending 3x Depreciation
CAPITAL INVESTMENTS & RATE BASE | 10 Capital Investments Spending 3x Depreciation $126 $123 $129 $135 $145 $52 $64 $68 $72 $75 2018 2019 2020 2021G 2022G KANSAS 2022: 1.9X DEPRECIATION $180 $191 $198 $215 $255 $69 $74 $76 $81 $87 2018 2019 2020 2021G 2022G OKLAHOMA Depreciation 2022: 2.9X DEPRECIATI
Slide 11: 2022 Estimated Average Rate Base
CAPITAL INVESTMENTS & RATE BASE | 11 $1.23 billion $1.94 billion $1.47 billion 2022 ESTIMATED AVERAGE RATE BASE* TOTAL: $4.64 BILLION Kansas Oklahoma Texas Rate Base $3.36 $3.62 $3.91 $4.25 $4.64 2018 2019 2020 2021G 2022G AVERAGE RATE BASE* (BILLIONS) * For definition of average rate base, see Appe
Slide 12: Appendix
APPENDIX G ONE Gas
Slide 13: Authorized Rate Base
APPENDIX | 13 Authorized Rate Base $1,257 $1,407 $1,475 $1,616 $1,726 2017 2018 2019 2020 2021 OKLAHOMA2 1 Kansas Gas Service’s most recent rate case, approved in February 2019, was settled without a determination of rate base and reflects Kansas Gas Service’s estimate of rate base contained within
Slide 14: Rate Base Definition
APPENDIX | 14 Rate Base Definition Authorized Rate Base $4.16 billion (as of Dec. 31, 2021) • Includes capital investments authorized in most recent rate cases and interim filings • Excludes any capital investments since last approved rate cases or filings 2022 Estimated Average Rate Base $4.64 bill
Slide 15: Non-GAAP Information
APPENDIX | 15 Non-GAAP Information ONE Gas has disclosed in this presentation cash flow from operations before changes in working capital, which is a non-GAAP financial measure. Cash flow from operations before changes in working capital is used as a measure of the company's financial performance. C
Slide 16: Non-GAAP Reconciliation: Cash Flow From Operations
APPENDIX | 16 (MILLIONS) 2022 GUIDANCE* Net income $ 221 Depreciation and amortization 220 Deferred taxes 43 Other 20 Cash flow from operations before changes in working capital $ 504 Non-GAAP Reconciliation Cash Flow From Operations Before Changes in Working Capital * Amounts shown are estimated mi