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ONE Gas Announces Second Quarter 2025 Financial Results; Increases 2025 Financial Guidance
ONE Gas, Inc. (NYSE: OGS) today announced its second quarter financial results, increased its 2025 financial guidance and declared its quarterly dividend.
About this update from One Gas, Inc.
Declares Third Quarter Dividend Analyst call and webcast scheduled tomorrow, August 6 at 11 a.m. EDT TULSA, Okla. , Aug. 5, 2025 /PRNewswire/ -- ONE Gas, Inc. (NYSE: OGS) today announced its second quarter financial results, increased its 2025 financial guidance and declared its quarterly dividend. "Our results and increased guidance reflect strong operational performance, effective cost management and continued progress on our regulatory initiatives," said Robert S. McAnnally, president and chief executive officer. "As we enter the second half of the year, we remain focused on executing our long-term strategy and delivering safe, reliable service to the communities we serve." SECOND QUARTER 2025 FINANCIAL RESULTS & HIGHLIGHTS SECOND QUARTER 2025 FINANCIAL PERFORMANCE ONE Gas reported operating income of $71.9 million in the second quarter, compared with $69.3 million in the second quarter 2024, which primarily reflects: The increases were partially offset by: Weather across the Company's service areas was 19 percent warmer than normal but 45 percent colder than the second quarter of 2024, with the impact on operating income largely mitigated by regulatory weather normalization mechanisms. Excluding interest related to KGSS-I securitized bonds, interest expense, net decreased $1.3 million for the three months ended June 30, 2025 , primarily due to a lower weighted-average interest rate on outstanding commercial paper compared to the prior-year period. Income tax expense reflects credits for amortization of the regulatory liability associated with excess deferred income taxes (EDIT) of $2.1 million and $1.8 million for the three months ended June 30, 2025 and 2024, respectively. Capital expenditures and asset removal costs were $190.1 million for the second quarter 2025 compared with $194.6 million in the same period last year, primarily representing expenditures for system integrity and extension of service to new areas. YEAR-TO-DATE 2025 FINANCIAL PERFORMANCE Operating income for the six months ended June 30, 2025 , was $252.4 million , compared with $215.1 million in 2024, which primarily reflects: These increases were partially offset by: Weather across the service territories for the six-month 2025 period was 3 percent colder than normal and 18 percent colder than the same period last year. The impact on operating income was largely tempered by regulatory weather normalization mechanisms. Excluding interest related to KGSS-I securitized bonds, interest expense, net increased $3.3 million for the six months ended June 30, 2025 , primarily due to the August 2024 reopening of the 5.10 percent senior notes to issue an additional $250 million . Income tax expense includes a credit for amortization of the regulatory liability associated with EDIT of $10.2 million and $11.9 million for the six months ended June 30, 2025 and 2024, respectively. Capital expenditures and asset removal costs were $367.8 million for the six-month 2025 period compared with $374.0 million in the same period last year, primarily representing expenditures for system integrity and extension of service to new areas. REGULATORY ACTIVITIES UPDATE In June 2025 , Texas Gas Service filed a rate case for all customers in the Central-Gulf, West-North and Rio Grande Valley service areas, requesting a $41.1 million revenue increase and proposing to consolidate all service areas into a single division. Texas Gas Service filed this rate case directly with the cities in each service area, which includes the cities of Austin and El Paso , and the Railroad Commission of Texas (RRC) for the unincorporated areas. This filing is based on a 10.4 percent return on equity and a 59.9 percent common equity ratio. New rates are expected to take effect in the first quarter of 2026. 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 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. In July 2025 , the KCC approved a $7.2 million increase effective August 2025 . In February 2025 , Oklahoma Natural Gas filed its annual Performance-Based Rate Change application for the test year ended December 2024 . The filing included a requested $41.5 million base rate revenue increase, a $2.4 million energy efficiency incentive, and $13.2 million of estimated EDIT to be credited to customers in 2026. A settlement agreement was reached among the parties, which included a $41.1 million base rate revenue increase, a $2.4 million energy efficiency incentive, and $17.9 million of estimated EDIT to be credited to customers beginning in February 2026 . Interim rates, subject to refund, were implemented in June 2025 . The Oklahoma Corporation Commission issued a final order approving the settlement in July 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. In May 2025 , the RRC approved the increases, and new rates became effective in June 2025 . 2025 FINANCIAL GUIDANCE INCREASED Based on strong operational performance and the expected impact of Texas House Bill 4384, the Company raised its 2025 financial guidance, with net income expected to be in the range of $261 million to $267 million , compared with its previously announced range of $254 million to $261 million . Earnings per diluted share are expected to be approximately $4.32 to $4.42 , compared with the previously announced range of $4.20 to $4.32 . The midpoint of 2025 earnings per diluted share guidance increased to $4.37 , up from the previous guidance midpoint of $4.26 . Capital expenditures, including asset removal costs, are still expected to be approximately $750 million in 2025. EARNINGS CONFERENCE CALL AND WEBCAST The ONE Gas executive management team will host a conference call on Wednesday, August 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 734834, 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 391730. --------------------------------------------------------------------------------------------------------------------- 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 June 30, 2025 , include $13.2 million associated with KGSS-I, which is offset by $9.4 million in operating and amortization expense and $3.8 million in interest expense, net. Compared to the same three month period last year, revenues increased $1.7 million , which was offset by a $2.0 million increase in operating and amortization expense and a $0.4 million decrease in interest expense, net. Revenues for the six months ended June 30, 2025 , include $24.8 million associated with KGSS-I, which is offset by $17.2 million in operating and amortization expense and $7.6 in interest expense, net. Compared to the same six month period last year, revenues increased $1.6 million , which was offset by a $2.3 million increase in amortization and operating expense and a $0.7 million decrease in interest expense, net. 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-second-quarter-2025-financial-results-increases-2025-financial-guidance-302522191.html SOURCE ONE Gas, Inc.