Business
ONE Gas Announces Fourth Quarter and Full Year 2024 Financial Results
ONE Gas, Inc. (NYSE: OGS) today announced its fourth quarter and full year 2024 financial results, which include diluted earnings per share of $1.34 and $3.91, respectively.
About this update from One Gas, Inc.
Analyst call and webcast scheduled tomorrow, Feb. 20 at 11 a.m. EST TULSA, Okla. , Feb. 19, 2025 /PRNewswire/ -- ONE Gas, Inc. (NYSE: OGS) today announced its fourth quarter and full year 2024 financial results, which include diluted earnings per share of $1.34 and $3.91 , respectively. "Our strong financial performance is a testament to our prudent fiscal planning, execution of our regulatory strategy and disciplined management of operations and maintenance expenses," said Robert S. McAnnally , president and chief executive officer. "As we embark on a new year, we are prepared to serve a growing customer base while continuing to enhance the safety and reliability of our system." 2024 FINANCIAL RESULTS & HIGHLIGHTS FOURTH QUARTER 2024 FINANCIAL PERFORMANCE ONE Gas reported operating income of $124.3 million in the fourth quarter, compared with $107.1 million in the fourth quarter 2023, which primarily reflects: The increase was partially offset by: Weather was 24.3 percent warmer than normal for the three months ended Dec. 31, 2024 . The impact on operating income was mitigated by weather normalization mechanisms. Excluding interest related to KGSS-I securitized bonds, net interest expense increased $10.4 million for the three months ending Dec. 31, 2024 . Interest expense was primarily impacted by the conversion of the two debt maturities in the first quarter 2024 to commercial paper with a higher weighted average interest rate, the issuance of $300 million of 5.10 percent senior notes in December 2023 and the reopening of the 5.10 percent senior notes in August 2024 to issue an additional $250 million , all of which are supportive of our capital plan. Income tax expense includes a credit for amortization of the regulatory liability associated with excess deferred income taxes (EDIT) of $12 .3 million and $6 .9 million for the three months ended Dec. 31, 2024 , and 2023, respectively. Capital expenditures and asset removal costs were $190.4 million for the fourth quarter 2024 compared with $189.6 million in the same period last year, primarily representing expenditures for system integrity and extension of service to new areas. FULL YEAR 2024 FINANCIAL PERFORMANCE Operating income for the twelve-month 2024 period was $399.0 million , compared with $377.6 million in 2023, which primarily reflects: These increases were offset partially by: Excluding interest related to KGSS-I securitized bonds, net interest expense increased $33.6 million for the twelve months ended Dec. 31, 2024 . Interest expense was primarily impacted by the conversion of the two debt maturities in the first quarter 2024 to commercial paper with a higher weighted average interest rate, the issuance of $300 million of 5.10 percent senior notes in December 2023 and the reopening of the 5.10 percent senior notes in August 2024 to issue an additional $250 million . Income tax expense includes a credit for amortization of the regulatory liability associated with EDIT of $25 .7 million and $22 .4 million for the twelve months ended Dec. 31, 2024 , and 2023, respectively. Capital expenditures and asset removal costs were $762.1 million for the twelve-month 2024 period compared with $728.7 million in the same period last year. The increase was due primarily to expenditures for system integrity and extension of service to new areas. In December, the Company settled 3,160,465 million shares of our common stock under our at-the-market equity program and forward contracts for net proceeds of $245.7 million . In December, we also amended the two forward sale agreements we entered into in September 2023 to extend the maturity date of 223,000 and 180,000 shares of our common stock to December 31, 2025 from December 31, 2024 . REGULATORY ACTIVITIES UPDATE In February 2025 , Texas Gas Service made Gas Reliability Infrastructure Program filings for all customers in the Central-Gulf service area, requesting a $15.4 million increase to be effective in June 2025. In February 2025 , Texas Gas Service made Gas Reliability Infrastructure Program filings for all customers in the West-North service area, requesting a $8.2 million increase to be effective in June 2025. 2025 FINANCIAL GUIDANCE On Dec. 4, 2024 , ONE Gas announced that its 2025 net income is expected to be in the range of $254 million to $261 million , with 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 Thursday, Feb. 20, 2025 , at 11 a.m. Eastern Standard Time ( 10 a.m. Central Standard 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 455855, 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 180102. 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 Dec. 31, 2024 , include $10.6 million associated with KGSS-I, which is offset by $6.7 million in operating and amortization expense and $3.9 million in net interest expense. Revenues decreased $2.3 million compared to the same period last year, which was offset by the net change of a $1.9 million decrease in operating and amortization expense and a $0.4 million decrease in net interest expense. Revenues for the twelve months ended Dec. 31, 2024 , include $44.4 million associated with KGSS-I, which is offset by $28.1 million in operating and amortization expense and $16.1 in net interest expense. Compared to the same twelve month period last year, revenues decreased $4.3 million , which was offset by the net change of a $2.5 million decrease in amortization and operating expense and a $1.7 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-fourth-quarter-and-full-year-2024-financial-results-302380659.html SOURCE ONE Gas, Inc.