One Gas Stock Earnings Reports

ONE Gas reported a strong first quarter: adjusted EPS rose 6% year-over-year despite an unusually warm winter across its service territories. Key drivers included new rates, the effects of Texas House Bill 4384, reduced depreciation and interest expense, and operational execution. The company highlighted that a 20% increase in storage capacity since Winter Storm Uri helped shield customers from price volatility and saved approximately $98 million versus buying at spot prices during a January cold event. ONE Gas affirmed full-year guidance (adjusted net income $306M–$314M; adjusted EPS $4.83–$4.95) and reiterated capital deployment and growth plans (completed ~$170M of capital projects in Q1). O&M rose ~8.6% year-over-year driven mainly by employee-related costs and increased line locating activity; management expects 3%–4% CAGR O&M growth over the 5-year plan. Growth initiatives include the Western Farmers 43-mile pipeline (in service targeted 2028) and several large-load opportunities (6 late-stage prospects that could support ~3 GW and up to 1 Bcf/day), plus smaller, accretive transport deals (e.g., a 20 MMcf/day Oklahoma data center agreement). Regulatory activity: Oklahoma filed a performance-based rate change (seeking $28.7M, effective late June), Texas filed a GSRS ($36.9M, expected July), and Kansas GSRS changes (effective July 1, 2026) expand recoverable investments and raise the max residential surcharge. Liquidity actions included at-the-market forward sales (approx. 237k shares settled in Q1, ~$41.5M would have been realized if all had settled by 3/31); dividend maintained at $0.68/quarter. Safety remains strong—ONE Gas won the AGA Safety Achievement Award for the ninth consecutive year. Management emphasized flexibility (deferring non-time-sensitive projects, in-sourcing Watch & Protect, AI-driven efficiency gains) to manage weather-driven and operational variability while protecting customer affordability and long-term investor value.