ONE Gas, Inc. (OGS) Bundle
A Brief History of ONE Gas, Inc.
Company Overview
ONE Gas, Inc. is a leading natural gas utility providing services to approximately 2.3 million customers across Oklahoma, Kansas, and Texas. The company operates through three divisions: Oklahoma Natural Gas, Kansas Gas Service, and Texas Gas Service.
Financial Performance (2024)
As of September 30, 2024, ONE Gas reported total revenues of $340.4 million for the third quarter, showing a slight increase compared to $335.8 million in the same quarter of 2023. For the nine months ended September 30, 2024, total revenues amounted to $1.452 billion, down from $1.766 billion in the previous year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $340.4 million | $335.8 million | $1.452 billion | $1.766 billion |
| Net Income | $19.2 million | $25.2 million | $145.8 million | $160.5 million |
| Earnings per Share (EPS) | $0.34 | $0.45 | $2.56 | $2.87 |
Debt and Financing Activities
At September 30, 2024, ONE Gas had total long-term debt of approximately $2.414 billion, down from $2.961 billion at the end of 2023. The company’s long-term debt-to-capital ratio stood at 46% as of September 30, 2024.
In October 2024, ONE Gas increased the capacity of its commercial paper program to $1.35 billion. The company issued $250 million of additional 5.10% senior notes due 2029, increasing the total amount of senior notes outstanding to $550 million.
| Debt Summary | Amount (in billions) | Interest Rate | Maturity |
|---|---|---|---|
| Senior Notes | $2.150 | 4.5% - 5.1% | 2029 - 2048 |
| Securitized Utility Tariff Bonds | $0.287 | 5.486% | 2023 - 2032 |
Customer Growth and Service Expansion
ONE Gas has seen an increase in its customer base, with approximately 5,500 new connections in the third quarter of 2024 alone. The total number of customers reached 2.272 million, compared to 2.251 million in the same period last year.
| Customer Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Customers | 2.272 million | 2.251 million |
| New Connections | 5,500 | 5,000 |
Regulatory Developments
In 2024, ONE Gas filed for rate increases in both Oklahoma and Kansas, reflecting significant investments in its natural gas distribution infrastructure. In Oklahoma, a $31.8 million revenue increase was proposed, while Kansas Gas Service secured a $70 million increase following a settlement agreement approved by the Kansas Corporation Commission.
Dividend Distribution
In November 2024, ONE Gas declared a dividend of $0.66 per share, equating to an annualized rate of $2.64 per share, payable on December 4, 2024.
A Who Owns ONE Gas, Inc. (OGS)
Ownership Structure
As of September 30, 2024, ONE Gas, Inc. (OGS) had a total of 56,655,255 shares issued and outstanding. The common stock is primarily held by institutional investors and retail shareholders.
Major Shareholders
Below is a table summarizing the significant shareholders of ONE Gas, Inc. as of 2024:
| Shareholder Type | Number of Shares | Percentage of Ownership |
|---|---|---|
| Institutional Investors | Approximately 40,000,000 | 70.6% |
| Retail Investors | Approximately 16,655,255 | 29.4% |
| Top Institutional Holder (Vanguard Group) | 7,500,000 | 13.2% |
| Top Institutional Holder (BlackRock) | 6,800,000 | 12.0% |
| Top Institutional Holder (State Street Corporation) | 5,000,000 | 8.8% |
| Other Major Investors | 20,700,000 | 36.6% |
Recent Share Performance
As of September 30, 2024, ONE Gas, Inc. shares were trading at approximately $77.33 per share, reflecting a strong performance over the past year.
Dividends
In November 2024, ONE Gas declared a dividend of $0.66 per share, which translates to an annualized dividend of $2.64 per share. This indicates a commitment to returning value to shareholders.
Market Capitalization
Based on the current share price, the market capitalization of ONE Gas, Inc. is approximately $4.39 billion.
Financial Performance
For the nine months ended September 30, 2024, ONE Gas reported total revenues of $1.452 billion, a decrease of 18% compared to the same period in the previous year. The net income for the same period was $145.8 million, or $2.56 per diluted share, down from $160.5 million, or $2.87 per diluted share, in 2023.
Debt Structure
As of September 30, 2024, ONE Gas had total long-term debt of approximately $2.4 billion, with a debt-to-capital ratio of 54.5%. This indicates a solid capital structure with manageable leverage.
Regulatory Environment
ONE Gas operates in a regulated environment, primarily in Oklahoma, Kansas, and Texas, with tariffs and rates subject to approval by respective regulatory bodies.
Future Outlook
With ongoing investments in infrastructure and a focus on service reliability, ONE Gas is positioned for stable growth in the coming years.
ONE Gas, Inc. (OGS) Mission Statement
Company Overview
ONE Gas, Inc. is a natural gas utility company that provides safe and reliable natural gas distribution services to residential, commercial, and transportation customers across various regions. The company operates under a mission to deliver exceptional service and value to its customers while ensuring the integrity of its operations and the safety of its employees and the public.
Mission Statement
As of 2024, ONE Gas, Inc. is committed to:
- Providing safe and reliable natural gas service.
- Delivering exceptional customer service and value.
- Investing in infrastructure to enhance operational efficiency.
- Maintaining a culture of safety and environmental stewardship.
- Supporting the communities they serve through engagement and sustainability initiatives.
Financial Performance
For the three months ended September 30, 2024, ONE Gas reported net income of $19.2 million, or $0.34 per diluted share, compared to $25.2 million, or $0.45 per diluted share, in the same period last year. For the nine months ended September 30, 2024, net income was $145.8 million, or $2.56 per diluted share, compared to $160.5 million, or $2.87 per diluted share, for the same period in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income (millions) | $19.2 | $25.2 | $145.8 | $160.5 |
| Earnings per Share (diluted) | $0.34 | $0.45 | $2.56 | $2.87 |
| Total Revenues (millions) | $340.4 | $335.8 | $1,452.9 | $1,766.1 |
| Natural Gas Sales (millions) | $289.8 | $286.0 | $1,290.7 | $1,606.0 |
| Transportation Revenues (millions) | $30.6 | $29.6 | $101.3 | $97.6 |
| Operating Income (millions) | $59.5 | $57.2 | $274.8 | $270.5 |
Capital Investments
ONE Gas has continued to invest in its infrastructure to enhance service delivery and operational efficiency. For the nine months ended September 30, 2024, capital expenditures and asset removal costs were reported at $571.7 million, an increase from $539.1 million in the same period of 2023.
Debt and Credit Facilities
As of September 30, 2024, ONE Gas had total long-term debt of approximately $2.4 billion. The company also had a total debt-to-capital ratio of 54.5%, demonstrating a solid capital structure. The company’s ONE Gas Credit Agreement provides a revolving credit facility of $1.35 billion, with $1.275 billion remaining available for future needs.
| Debt Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Long-term Debt (millions) | $2,413.9 | $2,960.8 |
| Total Debt-to-Capital Ratio | 54.5% | Not Provided |
| Commercial Paper Outstanding (millions) | $951.4 | $88.5 |
| Weighted-Average Interest Rate on Commercial Paper | 5.24% | 5.60% |
Dividends
ONE Gas declared a dividend of $0.66 per share in November 2024, which translates to an annualized dividend of $2.64 per share for shareholders of record as of November 19, 2024, payable on December 4, 2024.
Regulatory Compliance and Community Engagement
ONE Gas is actively engaged with regulatory authorities to ensure compliance and is committed to investing in community initiatives that enhance sustainability and customer service. The company’s regulatory assets and liabilities are managed to ensure ongoing operational integrity and reliability of service.
How ONE Gas, Inc. (OGS) Works
Company Overview
ONE Gas, Inc. is a natural gas distribution company serving customers in Oklahoma, Kansas, and Texas. As of September 30, 2024, ONE Gas has a diverse customer base, with approximately 2.27 million customers across various sectors.
Financial Performance
For the three months ended September 30, 2024, ONE Gas reported:
- Total revenues: $340.4 million
- Net income: $19.3 million, or $0.34 per diluted share
- Operating income: $59.5 million
- Capital expenditures: $197.7 million
For the nine months ended September 30, 2024, the financial highlights include:
- Total revenues: $1.45 billion
- Net income: $145.8 million, or $2.56 per diluted share
- Operating income: $274.8 million
- Capital expenditures: $571.7 million
Revenue Breakdown
The following table summarizes the revenue sources for ONE Gas for the three and nine months ended September 30, 2024:
| Revenue Source | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Natural gas sales to customers | $289.2 million | $285.4 million | $1.28 billion | $1.60 billion |
| Transportation revenues | $30.5 million | $29.5 million | $100.0 million | $97.1 million |
| Securitization customer charges | $10.5 million | $12.0 million | $33.7 million | $35.8 million |
| Other revenues | $9.5 million | $8.2 million | $27.2 million | $26.7 million |
| Total revenues | $340.4 million | $335.8 million | $1.45 billion | $1.77 billion |
Operating Costs
For the three months ended September 30, 2024, operating costs totaled $221.3 million, which includes:
- Cost of natural gas: $59.6 million
- Operations and maintenance: $130.7 million
- Depreciation and amortization: $72.1 million
- General taxes: $18.4 million
For the nine months ended September 30, 2024, total operating costs were $663.5 million.
Customer Base
As of September 30, 2024, ONE Gas serves the following number of average customers:
| Customer Type | Oklahoma | Kansas | Texas | Total |
|---|---|---|---|---|
| Residential | 839,000 | 591,000 | 666,000 | 2,096,000 |
| Commercial and industrial | 76,000 | 50,000 | 35,000 | 161,000 |
| Transportation | 5,000 | 6,000 | 1,000 | 12,000 |
| Total customers | 920,000 | 647,000 | 705,000 | 2,272,000 |
Debt and Financing
As of September 30, 2024, ONE Gas had total long-term debt of approximately $2.41 billion, with a debt-to-capital ratio of 54.5%. The breakdown of their senior notes is as follows:
| Senior Notes | Amount (in millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| Due February 2024 | $0 | 3.610% | February 2024 |
| Due April 2029 | $550 | 5.100% | April 2029 |
| Due May 2030 | $300 | 2.000% | May 2030 |
| Due September 2032 | $300 | 4.250% | September 2032 |
| Due February 2044 | $600 | 4.658% | February 2044 |
| Due November 2048 | $400 | 4.500% | November 2048 |
Cash Flow Analysis
For the nine months ended September 30, 2024, ONE Gas reported cash flows as follows:
| Cash Flow Activity | Amount (in millions) |
|---|---|
| Operating activities | $305.8 |
| Investing activities | ($522.2) |
| Financing activities | $205.8 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at the end of the period totaled $28.8 million.
How ONE Gas, Inc. (OGS) Makes Money
Revenue Sources
ONE Gas, Inc. generates revenue primarily through the sale of natural gas and related services. The following table illustrates the revenue disaggregation for the three and nine months ended September 30, 2024, compared to the same periods in 2023.
| Revenue Source | Three Months Ended September 30, 2024 (Thousands of dollars) | Three Months Ended September 30, 2023 (Thousands of dollars) | Nine Months Ended September 30, 2024 (Thousands of dollars) | Nine Months Ended September 30, 2023 (Thousands of dollars) |
|---|---|---|---|---|
| Natural gas sales to customers | 289,243 | 285,373 | 1,277,099 | 1,598,466 |
| Transportation revenues | 30,492 | 29,535 | 100,046 | 97,084 |
| Securitization customer charges | 10,515 | 12,014 | 33,741 | 35,754 |
| Miscellaneous revenues | 5,497 | 4,812 | 17,562 | 17,023 |
| Total revenues from contracts with customers | 335,747 | 331,734 | 1,428,448 | 1,748,327 |
| Other revenues - natural gas sales related | 535 | 653 | 14,757 | 8,057 |
| Other revenues | 4,116 | 3,429 | 9,650 | 9,689 |
| Total other revenues | 4,651 | 4,082 | 24,407 | 17,746 |
| Total revenues | 340,398 | 335,816 | 1,452,855 | 1,766,073 |
Cost Structure
The cost of natural gas and operating expenses are critical components of ONE Gas's financial performance. The following table summarizes the costs incurred for the three and nine months ended September 30, 2024, compared to the same periods in 2023.
| Cost Type | Three Months Ended September 30, 2024 (Thousands of dollars) | Three Months Ended September 30, 2023 (Thousands of dollars) | Nine Months Ended September 30, 2024 (Thousands of dollars) | Nine Months Ended September 30, 2023 (Thousands of dollars) |
|---|---|---|---|---|
| Cost of natural gas | 59,632 | 70,910 | 514,593 | 866,950 |
| Operations and maintenance | 130,743 | 121,623 | 385,258 | 366,921 |
| Depreciation and amortization | 72,126 | 68,435 | 221,247 | 207,246 |
| General taxes | 18,448 | 17,645 | 57,023 | 54,501 |
| Total operating expenses | 221,317 | 207,703 | 663,528 | 628,668 |
Operating Income
For the three months ended September 30, 2024, ONE Gas reported an operating income of $59.4 million, an increase from $57.2 million in the same period for 2023. For the nine months ended September 30, 2024, the operating income was $274.7 million, compared to $270.5 million for the same period in 2023.
Net Income
Net income for ONE Gas was $19.3 million for the three months ended September 30, 2024, down from $25.2 million in the same period of 2023. For the nine months ended September 30, 2024, net income was $145.8 million, compared to $160.5 million in 2023.
Capital Expenditures
In 2024, ONE Gas's capital expenditures and asset removal costs are projected to be approximately $750 million. The company focuses on infrastructure investments, including system integrity and extensions of service to new areas.
Customer Base Growth
As of September 30, 2024, the average number of customers served by ONE Gas is summarized in the table below across its operating regions:
| Customer Type | Oklahoma | Kansas | Texas | Total |
|---|---|---|---|---|
| Residential | 839 | 591 | 666 | 2,096 |
| Commercial and industrial | 76 | 50 | 35 | 161 |
| Transportation | 5 | 6 | 1 | 12 |
| Total customers | 920 | 647 | 705 | 2,272 |
In summary, ONE Gas, Inc. continues to leverage its core business model of natural gas distribution, capitalizing on customer growth while managing costs and maintaining a stable revenue stream through its regulatory mechanisms and diversified revenue sources.
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Resources:
- ONE Gas, Inc. (OGS) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of ONE Gas, Inc. (OGS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ONE Gas, Inc. (OGS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.