One Gas, Inc. · NYSE:OGS
One Gas — Investor Presentation (January 2021)
16 slides from One Gas's investor presentation, Jan 20, 2021
Slide 1: 2021 Financial Guidance
2021 FINANCIAL GUIDANCE January 19, 2021 Exhibit 99.3
Slide 2: Forward-Looking Statements
FORWARD LOOKING STATEMENTS | 2 Forward-Looking Statements Statements contained in this presentation that include company expectations or predictions should be considered forward-looking statements that are covered by the safe harbor provisions of the Securities Act of 1933 and the Securities and Exc
Slide 3: Five-Year Financial Outlook
FINANCIAL GUIDANCE | 3 Five-Year Financial Outlook Expected average annual growth rates: (2020 base year) • 7 – 8% Rate base • 6 – 8% Net income • 5 – 7% Earnings per diluted share • 6 – 8% Dividend • ~3% Operations & maintenance expenses $3 billion in total capital investments • ~65 – 70% for syste
Slide 4: Diluted EPS & Net Income
FINANCIAL GUIDANCE | 4 $3.08 $3.25 $3.51 $3.68** $3.80** $163 $172 $187 $196** $204** 2017 2018 2019 2020G 2021G DILUTED EPS & NET INCOME Diluted EPS Net Income ** Represents midpoint of guidance range as of Jan. 19, 2021* For definition of average rate base, see Appendix 2021 Guidance Summary • Net
Slide 5: Growing Dividends
FINANCIAL GUIDANCE | 5 Growing Dividends Quarterly Dividend* • 58 cents per share in 2021, representing a 7.4% increase over 2020 Target annual payout ratio • 55 – 65% of net income Building Shareholder Value $1.68 $1.84 $2.00 $2.16 $2.32* 2017 2018 2019 2020G 2021G DIVIDENDS & PAYOUT RATIO 55% 57%
Slide 6: Financing Requirements
FINANCIAL GUIDANCE | 6 Financing Requirements Sources and Uses * Before changes in working capital. See non-GAAP information in Appendix. ** Based on midpoint of 2021 capital guidance range. Financing requirements $174 2021 Sources 2021 Uses (M IL LI ON S) Dividends $125 Capital expenditures and ass
Slide 7: Return on Equity
FINANCIAL GUIDANCE | 7 Return on Equity 7.9% 8.1% 8.3% 8.4%* 8.1%* 2017 2018 2019 2020G 2021G * Reflects the midpoint of earnings guidance and estimated average rate base Continue to minimize the gap between allowed and actual returns Authorized ROE by state: • Oklahoma ‒ 9% to 10% band, with a 9.5%
Slide 8: Capital Investments & Rate Base
CAPITAL INVESTMENTS & RATE BASE
Slide 9: Well-Defined Capital Investment Plan
CAPITAL INVESTMENTS & RATE BASE | 9 $306 $317 $339 $357 $370$80 $99 $111 $135 $151 $32 $26 $21 $20 $19 $151 $158 $178 $188 $201 2017 2018 2019 2020G 2021G CAPITAL INVESTMENTS (MILLIONS) System Integrity Customer Growth Other/IT Depreciation $418 $442 $470 ~$512 ~$540 Well-Defined Capital Investment
Slide 10: Capital Expenditures with Asset Removal Costs by State
CAPITAL INVESTMENTS & RATE BASE | 10 Capital Expenditures with Asset Removal Costs $123 $126 $123 $125 $135 * $50 $52 $64 $67 $72 2017 2018 2019 2020G 2021G KANSAS 2021: 1.9X DEPRECIATION $173 $180 $191 $198 $204 * $67 $69 $74 $78 $81 2017 2018 2019 2020G 2021G OKLAHOMA Depreciation 2021: 2.5X DEPRE
Slide 11: 2021 Estimated Average Rate Base
CAPITAL INVESTMENTS & RATE BASE | 11 $1.16 billion $1.75 billion $1.32 billion 2021 ESTIMATED AVERAGE RATE BASE* TOTAL: $4.23 BILLION Kansas Oklahoma Texas Rate Base Growth $3.18 $3.36 $3.62 $3.91 $4.23 2017 2018 2019 2020G 2021G AVERAGE RATE BASE* (BILLIONS) * For definition of average rate base, s
Slide 12: Appendix
APPENDIX
Slide 13: Authorized Rate Base
APPENDIX | 13 Authorized Rate Base $1,202 $1,257 $1,407 3 $1,475 $1,616 2016 2017 2018 2019 2020 OKLAHOMA2 1 KGS’ 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 the settlement
Slide 14: Rate Base Definition
APPENDIX | 14 Rate Base Definition Authorized Rate Base $3.80 billion (as of Dec. 31, 2020) • Includes capital investments authorized in most recent rate cases and interim filings • Excludes any capital investments since last approved rate cases or filings 2021 Estimated Average Rate Base $4.23 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) 2021 GUIDANCE* Net Income $ 204 Depreciation and amortization 206 Deferred taxes 35 Other 10 Cash flow from operations before changes in working capital $ 455 * Amounts shown are estimated midpoints as contemplated in 2021 guidance issued on Jan. 19, 2021 Non-GAAP Reconcilia