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ONE Gas Reports Impressive Q2 2026 Financials

ONE Gas, Inc. (NYSE: OGS) recently released its financial results for the second quarter of 2026, showcasing remarkable growth and a positive outlook for the year ahead. The company experienced a solid performance, prompting it to raise its adjusted earnings expectations for the full year, now projecting figures within the upper end of its previously announced financial guidance ranges.

Financial Highlights

The company’s adjusted net income for the second quarter reached $52.1 million, or $0.82 per diluted share, marking a substantial increase compared to $32.7 million or $0.54 per diluted share from the same period last year. Furthermore, the year-to-date adjusted net income is reported at $185.5 million, which translates to $2.94 per diluted share, reflecting a significant rise from $152.8 million or $2.53 per diluted share in 2025.

Robert S. McAnnally, CEO of ONE Gas, expressed confidence in their growth strategy, stating, "Our strong second quarter results reflect our commitment to reliability and affordability for our customers, as well as our goal to create long-term value for our shareholders.”

Revenue Growth Factors

The increases in revenue can be attributed to several factors, including:

• - An additional $16.4 million from new rates.
• - A $1.4 million rise in residential sales driven by customer growth in Oklahoma and Texas.
• - An increase of $1.3 million in line extension revenue in Oklahoma.

However, these gains were somewhat offset by a rise in operational costs, with $7.4 million attributed to employee-related expenses and $1.1 million each for outside services and fleet expenses.

Weather conditions during this quarter were remarkably warmer, with temperatures being 42% higher than normal, which could have impacted overall consumption. Despite this, weather normalization mechanisms helped mitigate adverse effects on operating income.

Looking Ahead: Adjusted Earnings Expectations

ONE Gas has now adjusted its full-year expectations for 2026 adjusted net income to between $306 million and $314 million, with earnings per diluted share estimates ranging from $4.83 to $4.95. This upward revision is based on a robust performance in the first half of the year alongside anticipated benefits from legislative changes like Texas House Bill 4384.

For capital investments, the company expects to allocate approximately $800 million in 2026, primarily focused on system integrity and the expansion of service to new areas, specifically $230 million directed towards extending service to new customers.

Quarterly Dividend Declaration

In line with its positive financial performance, the Board of Directors has declared a quarterly dividend of $0.68 per share, translating to an annualized rate of $2.72. This dividend will be payable to shareholders of record by the end of business on August 17, 2026.

Conclusion

The financial results from ONE Gas for the second quarter of 2026 reflect a strong operational footing and a promising outlook as the company adapts to market conditions while aiming for growth. With its strategic investments and commitment to customer service, ONE Gas continues to position itself as a leader in the natural gas utility space across Kansas, Oklahoma, and Texas. Investors and stakeholders can now look forward to the upcoming conference call for deeper insights into the company's performance and future projections.

Upcoming Events

For further discussions on these developments, ONE Gas will hold a live conference call on August 5, 2026, at 11 a.m. EDT, accessed via their investor relations page.