ONE Gas Announces Fourth Quarter and Full Year 2025 Financial Results; Releases Non-GAAP Adjusted Financial Guidance

About this update from One Gas, Inc.

Analyst call and webcast scheduled tomorrow, Feb. 19 at 11 a.m. EST TULSA, Okla. , Feb. 18, 2026 /PRNewswire/ -- ONE Gas, Inc. (NYSE: OGS) today announced its fourth quarter and full year 2025 financial results, which include diluted earnings per share of $1.42 and $4.37, respectively. The Company also provided non‑GAAP adjustments to both earnings and its 2026 financial guidance to capture the full impact of a regulatory mechanism intended to mitigate regulatory lag. Adjusted net income was $1.48 per diluted share for the fourth quarter, and $4.48 per diluted share for the full year 2025. For 2026, non‑GAAP earnings are expected to range from $306 million to $314 million, or $4.83 to $4.95 per diluted share. "Our team delivered strong operational and financial results in 2025, reflecting disciplined execution and a commitment to safely serving our communities," said Robert S. McAnnally, president and chief executive officer. "Looking ahead, we see meaningful opportunity in both residential and large-load growth, supporting long-term value creation and affordability for our customers." FINANCIAL RESULTS & HIGHLIGHTS FOURTH QUARTER 2025 FINANCIAL PERFORMANCE ONE Gas reported operating income of $139.7 million in the fourth quarter, compared with $124.3 million in the fourth quarter 2024, which primarily reflects: The increases were partially offset by: Weather was 22.7 percent warmer than normal for the three months ended Dec. 31, 2025. The impact on operating income was mitigated by weather normalization mechanisms. Excluding interest related to KGSS-I securitized bonds, net interest expense decreased $2.9 million for the three months ending Dec. 31, 2025. The decrease in interest expense is due primarily to commercial paper borrowings at lower rates and the implementation of Texas House Bill 4384. Income tax expense includes a credit for amortization of the regulatory liability associated with excess deferred income taxes (EDIT) of $5.6 million and $12.3 million for the three months ended Dec. 31, 2025, and 2024, respectively. Capital expenditures and asset removal costs were $184.1 million for the fourth quarter 2025 compared with $190.4 million in the same period last year, primarily representing expenditures for system integrity and extension of service to new areas. FULL YEAR 2025 FINANCIAL PERFORMANCE Operating income for the twelve-month 2025 period was $457.5 million, compared with $399.0 million in 2024, which primarily reflects: These increases were partially offset by: Excluding interest related to KGSS-I securitized bonds, net interest expense decreased $3.0 million for the twelve months ended Dec. 31, 2025. The decrease in interest expense is due primarily to commercial paper borrowings at lower rates and the implementation of Texas House Bill 4384. Income tax expense includes a credit for amortization of the regulatory liability associated with EDIT of $17.6 million and $25.7 million for the twelve months ended Dec. 31, 2025, and 2024, respectively. Capital expenditures and asset removal costs were $759.5 million for the twelve-month 2025 period compared with $762.1 million in the same period last year. In December, the Company settled 2,633,700 million shares of our common stock under forward contracts for net proceeds of $205.0 million. REGULATORY ACTIVITIES UPDATE In June 2025, Texas Gas Service filed a rate case for customers in the Central-Gulf, West-North, and Rio Grande Valley service areas. The Railroad Commission of Texas ultimately approved a $14.4 million revenue increase and the consolidation of all service areas into a single division, based on a 59.9% equity ratio and a 9.8% ROE. New rates became effective January 27, 2026. 2026 FINANCIAL GUIDANCE On Dec. 1, 2025, ONE Gas announced that its 2026 net income is expected to be in the range of $294 million to $302 million, with earnings per diluted share of $4.65 to $4.77. The Company expects 2026 adjusted net income to be in the range of $306 million to $314 million, with adjusted net income per diluted share of $4.83 to $4.95. ONE Gas expects long‑term adjusted net income growth of 7 to 9 percent and adjusted net income per diluted share growth of 5 to 7 percent, consistent with its established five‑year financial outlook. These growth rates are based on adjusted 2025 actual results, including adjusted net income of $271 million and adjusted net income per diluted share of $4.48. Capital investments, including asset removal costs, are expected to be approximately $800 million in 2026, primarily targeted for system integrity and replacement projects. Capital investments for extensions to new customers are expected to be approximately $230 million of the $800 million. EARNINGS CONFERENCE CALL AND WEBCAST The ONE Gas executive management team will host a conference call on Thursday, February 19, 2026, 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 246604, 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 437369. NON-GAAP DISCLOSURE STATEMENT This press release includes financial results and guidance for ONE Gas with respect to adjusted net income and adjusted net income per share, which are non-GAAP financial measures as defined by the Securities and Exchange Commission. Adjusted net income and adjusted net income per share are calculated as GAAP net income plus the deferral of an equity portion of a carrying cost attributable to shareholders' investment capitalized for regulatory purposes but not for financial reporting purposes. These carrying costs relate to property, plant and equipment that has been placed in service, but not yet reflected in base rates. Adjusted net income and adjusted net income per share should not be considered in isolation or as a substitute for GAAP net income or GAAP earnings per share. Management believes these non‑GAAP measures provide useful information because they offer a more complete view of our overall regulatory economics, reflect the period-specific effects of certain regulatory mechanisms designed to mitigate regulatory lag associated with property, plant and equipment placed in service prior to regulatory action, and reflect the impact of regulatory timing differences that arise under the Company's rate-setting framework. These adjustments, net of applicable tax effects, are expected to recur as a result of the Company's regulatory framework and are a consistent part of our earnings profile. A reconciliation of the Company's GAAP net income and GAAP earnings per share to adjusted net income and adjusted net income per share is provided in the Appendix. ONE Gas, Inc. (NYSE: OGS) is a 100% regulated natural gas utility, and trades on the New York Stock Exchange and the NYSE Texas 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 The following table reconciles the Company's GAAP net income and GAAP earnings per share to adjusted net income and adjusted net income per share:   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 December 31, 2025, include $11.4 million associated with KGSS-I, which is offset by $7.8 million in operating and amortization expense and $3.6 million in interest expense, net. Compared to the same three month period last year, revenues increased $0.7 million and interest expense, net, decreased $0.4 million , offset by a $1.1 million increase in operating and amortization expense. Revenues for the twelve months ended December 31, 2025, include $47.4 million associated with KGSS-I, which is offset by $32.6 million in operating and amortization expense and $14.7 million in interest expense, net. Compared to the same twelve month period last year, revenues increased $3.1 million and interest expense, net, decreased $1.5 million, offset by a $4.5 million increase in amortization and operating 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-2025-financial-results-releases-non-gaap-adjusted-financial-guidance-302691813.html

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