One Gas, Inc. · NYSE:OGS
One Gas — Investor Presentation (December 2024)
21 slides from One Gas's investor presentation, Dec 5, 2024
Slide 1: 2025 Financial Guidance
2025 Financial Guidance December 2024
Slide 2: About Us
71% market share, the largest in Kansas About Us ONE Gas, Inc. (NYSE: OGS) is a 100-percent regulated natural gas utility 89% market share, the largest and is one of the largest natural gas utilities in the United States. in Oklahoma ONE Gas provides natural gas distribution services to approximatel
Slide 3: Financial Outlook
Financial Outlook
Slide 4: 2025 Guidance Summary
2025 Guidance Summary1 Creating long-term value and serving a growing customer base EARNINGS OUTLOOK • Net income for 2025 in a range of $254 - $261 million • EPS range of $4.20 - $4.32 per diluted share • Assumes 60.5 million diluted shares outstanding CAPITAL INVESTMENTS • 2025 capital investments
Slide 5: Financing Requirements
Financing Requirements Maintaining Balance Sheet Strength 2025 dividends and capital investments primarily funded by cash flow from operations of approximately $600-$650 million1 • Expected 2025 short- and long-term financing need of $270-$300 million ~$1.5 billion net long-term financing needs thro
Slide 6: Five-Year Financial Highlights
Five-Year Financial Highlights Investing in a Reliable and Growing System CAPITAL INVESTMENTS & RATE BASE AVERAGE ANNUAL GROWTH RATES • Capital investments of approximately $4.0 billion • Based off 2024 updated guidance midpoint of $3.90 ̶ $2.8 billion investment in system integrity and • Long-term
Slide 7: Long-Term EPS Performance & Outlook
Long-Term EPS Performance & Outlook EPS CAGR 4-6% $5.50 EPS CAGRs $5.22 5-Year Forecast (2024G - 2029*) ~6.0% $5.00 10-Year (2014 - 2024G) 6.5% 10-Year (2015 - 2025G) 6.6% $4.50 15-Year (2014 - 2029*) 6.3% $4.26 $4.08 $4.14 $4.00 $3.85 $3.90 $3.68 $3.51 $3.50 $3.25 $3.08 $3.00 $2.65 $2.50 $2.24 $2.0
Slide 8: Balance Sheet Strength
Balance Sheet Strength Strong credit rating and financing flexibility * REVOLVING CREDIT FACILITY SENIOR DEBT MATURITIES (MILLIONS) • $1.35 billion limit • Expires March 2028 COMMERCIAL PAPER PROGRAM • $1.35 billion limit * Excluding KGSS-I long-term debt associated with Winter Storm Uri of ~$287M a
Slide 9: Capital Investments
Capital Investments G ONE Gas
Slide 10: Well-Defined Capital Investment Plan
Well-Defined Capital Investment Plan Investments ~ 3x Depreciation CAPITAL INVESTMENTS 2025G CAPITAL INVESTMENTS (MILLIONS) BY STATE (MILLIONS) $729 ~$750 ~$750 $26 $31 $26 $658 $32 $172 $179 $178 Kansas $542 $21 $177 $552 $151 $525 $540 $138 Texas $449 $311 $383 $252 $283 Oklahoma $216 $234 $288 $2
Slide 11: Capital Investments
Capital Investments KANSAS OKLAHOMA TEXAS 2024G: 2.0X DEPRECIATION 2024G: 2.9X DEPRECIATION 2024G: 4.2X DEPRECIATION $286 $293 $288 $311 $288 $257 $256 $242 $215 $185 $188 $159 $169 $151 $139 (MILLIONS) $83 $108 $63 $69 $92 $93 $100 $53 $83 $82 $88 $48 $72 $75 $78 2021 2022 2023 2024G 2025G 2021 202
Slide 12: Rate Base
Rate Base AVERAGE RATE BASE* 2025G AVERAGE RATE BASE* (BILLIONS) BY STATE TOTAL: $5.8 BILLION $5.55 $5.80 $5.15 $4.69 $1.38 billion $4.25 $1.85 billion $2.57 billion 2021 2022 2023 2024G 2025G Kansas Oklahoma Texas * See Appendix for definition ~5% growth expected in 2025 CAPITAL INVESTMENTS | 12
Slide 13: Our Strategy
Our Strategy G ONE Gas
Slide 14: Serving a Growing Customer Base
Serving a Growing Customer Base Growing Demand for Natural Gas Provides Long-Term Growth Opportunity WSJ Top 25 “Hottest Job Economic growth creates durable residential and Markets” lists 4 cities in ONE commercial development and drives system Gas service territory1 expansion #5 Oklahoma City #7 Au
Slide 15: Enhancing Capacity & Improving Operational Efficiency
Enhancing Capacity & Improving Operational Efficiency Constructing a Foundation for Growth Improved processes and workforce investments increase operating capacity and capabilities Investment in workforce development fosters strong performance and retention Managing expenses helps preserve customer
Slide 16: Appendix
Appendix G ONE Gas
Slide 17: Recent Regulatory Filings
Recent Regulatory Filings APPROVED RATES EFFECTIVE EQUITY RETURN ON JURISDICTION (MILLIONS) DATE RATIO EQUITY Central-Gulf – Rate Case $19.3 M Dec-2024 59.58% 9.7% Kansas – Rate Case $35.0 M (net) Nov-2024 N/A N/A* Rio Grande Valley – GRIP $3.6 M Sep-2024 59.10% 9.7% COMPLETED Oklahoma – PBRC $31.4
Slide 18: Authorized Rate Base
Authorized Rate Base As of November 30, 2024 KANSAS* OKLAHOMA TEXAS $2,273 $2,067 $1,854 (MILLIONS) $1,616 $1,726 $1,528 $1,720 $1,330 $1,412 $1,133 $1,197 $1,261 $1,239 $1,336 $1,047 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 * Kansas Gas Service’s most recent comple
Slide 19: Rate Base Definition
Rate Base Definition Authorized Rate Base $5.4 billion (as of Nov. 30, 2024) • Includes capital investments authorized in most recent rate cases and interim filings • Excludes any capital investments since last approved rate cases or filings 2025 Estimated Average Rate Base $5.8 billion • Average of
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Cash Flow From Operations Before Changes in Working Capital (MILLIONS) 2025 GUIDANCE* Net income $ 257 Depreciation and amortization 298 Deferred taxes 50 Other 23 Cash flow from operations before changes in working capital $ 628 * Amounts shown are estimated midpoints as con
Slide 21: Investor Information
Investor Information Contact Information and 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 cove