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ONE Gas Announces First Quarter 2025 Financial Results; Expects to Achieve the Upper Half of 2025 Financial Guidance; Declares Second Quarter Dividend
ONE Gas, Inc. (NYSE: OGS) today announced its first-quarter financial results, said that it expects to achieve the upper half of its previously announced 2025 financial guidance and declared its quarterly dividend.
About this update from One Gas, Inc.
Analyst call and webcast scheduled tomorrow, May 6 at 11 a.m. EST TULSA, Okla. , May 5, 2025 /PRNewswire/ -- ONE Gas, Inc. (NYSE: OGS) today announced its first-quarter financial results, said that it expects to achieve the upper half of its previously announced 2025 financial guidance and declared its quarterly dividend. "We achieved strong financial results in the first quarter due to our effective regulatory strategy and a disciplined approach to managing expenses," said Robert S. McAnnally , president and chief executive officer. "Safety remains our top priority as we serve our customers and meet the growing demand for natural gas across our service territory." FIRST QUARTER 2025 FINANCIAL RESULTS & HIGHLIGHTS FIRST QUARTER 2025 FINANCIAL PERFORMANCE ONE Gas reported operating income of $180.5 million in the first quarter, compared with $145.9 million in the first quarter 2024, which primarily reflects: The increase was partially offset by: Excluding interest related to KGSS-I securitized bonds, net interest expense increased $4.7 million for the three months ending March 31, 2025 . The increase in interest expense is due primarily to the reopening of the outstanding 5.10 percent senior notes in August 2024 to issue an additional $250 million and higher average commercial paper balances. Income tax expense reflects credits for amortization of the regulatory liability associated with excess deferred income taxes (EDIT) of $8.1 million and $10.1 million for the three months ended March 31, 2025 , and 2024, respectively. Capital expenditures and asset removal costs were $177.7 million for the first quarter 2025 compared with $179.4 million in the same period last year, primarily representing expenditures for system integrity and extension of service to new areas. REGULATORY ACTIVITIES UPDATE In April 2025 , Kansas Gas Service submitted an application to the Kansas Corporation Commission (KCC) requesting an increase of approximately $7.2 million related to its Gas System Reliability Surcharge. The KCC has until August 2025 to issue an order. In April 2025 , Texas Gas Service made Gas Reliability Infrastructure Program filings for all customers in the Rio Grande Valley service area, requesting a $3.2 million increase to be effective in September 2025 . In February 2025 , Oklahoma Natural Gas filed its annual Performance-Based Rate Change application for the test year ended December 2024 . The filing includes a requested $41.5 million base rate revenue increase, $2.4 million energy efficiency incentive and $13.2 million of EDIT to be credited to customers in 2026. A hearing is scheduled for June 12, 2025 . In February 2025 , Texas Gas Service made Gas Reliability Infrastructure Program filings for customers in each of the Central-Gulf and West-North service areas, requesting increases of $15.4 million and $8.2 million , respectively, to be effective in June 2025 . 2025 FINANCIAL GUIDANCE The company expects to achieve the upper half of the 2025 financial guidance shared on Dec. 5, 2024 , which provided for net income in the range of $254 million to $261 million and earnings per diluted share of $4.20 to $4.32 . Capital investments, including asset removal costs, are expected to be approximately $750 million in 2025, primarily targeted for system integrity and replacement projects. Capital investments for extensions to new customers are expected to be approximately $180 million . EARNINGS CONFERENCE CALL AND WEBCAST The ONE Gas executive management team will host a conference call on Tuesday, May 6, 2025 , at 11 a.m. Eastern Daylight Time ( 10 a.m. Central Daylight Time ). The call also will be carried live on the ONE Gas website. To participate in the telephone conference call, dial 833-470-1428, passcode 583185, or log on to www.onegas.com/investors and select Events and Presentations. If you are unable to participate in the conference call or the webcast, a replay will be available on the ONE Gas website, www.onegas.com , for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 866-813-9403, passcode 983295. ONE Gas, Inc. (NYSE: OGS) is a 100% regulated natural gas utility, and trades on the New York Stock Exchange under the symbol "OGS." ONE Gas is included in the S&P MidCap 400 Index and is one of the largest natural gas utilities in the United States . Headquartered in Tulsa, Oklahoma , ONE Gas provides a reliable and affordable energy choice to more than 2.3 million customers in Kansas , Oklahoma and Texas . Its divisions include Kansas Gas Service, the largest natural gas distributor in Kansas ; Oklahoma Natural Gas, the largest in Oklahoma ; and Texas Gas Service, the third largest in Texas , in terms of customers. For more information and the latest news about ONE Gas, visit onegas.com and follow its social channels: @ONEGas , Facebook , LinkedIn and YouTube . Some of the statements contained and incorporated in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The forward-looking statements relate to our anticipated financial performance, liquidity, management's plans and objectives for our future operations, our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements. Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled," "likely," and other words and terms of similar meaning. One should not place undue reliance on forward-looking statements, which are applicable only as of the date of this news release. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, costs, liquidity, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following: These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our Annual Report. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise. APPENDIX ONE Gas, Inc. KGSS-I SECURITIZATION In November 2022 , Kansas Gas Service Securitization I, L.L.C. (KGSS-I) issued $336 million of securitized utility tariff bonds. KGSS-I used the proceeds from the issuance to purchase the Securitized Utility Tariff Property from Kansas Gas Service, pay for debt issuance costs, and reimburse Kansas Gas Service for upfront securitization costs paid on behalf of KGSS-I. Revenues for the three months ended March 31, 2025 , include $11.6 million associated with KGSS-I, which is offset by $7.8 million in operating and amortization expense and $3.8 million in net interest expense. Revenues were in line compared to the same period last year, which was offset by a $0.3 million increase in operating and amortization expense and a $0.3 million decrease in net interest expense. The following table summarizes the impact of KGSS-I on the consolidated balance sheets, for the periods indicated: The following table summarizes the impact of KGSS-I on the consolidated statements of income, for the periods indicated: View original content to download multimedia: https://www.prnewswire.com/news-releases/one-gas-announces-first-quarter-2025-financial-results-expects-to-achieve-the-upper-half-of-2025-financial-guidance-declares-second-quarter-dividend-302446273.html SOURCE ONE Gas, Inc.