ONE Gas, Inc. Executes Successful Pricing of 2.5 Million Share Offering

On May 8, 2025, ONE Gas, Inc. announced the pricing of a public offering of 2,500,000 shares of common stock, projecting to generate gross proceeds close to $197.5 million prior to expenses and underwriting fees. This significant move is part of a broader strategy facilitated through a forward sale agreement with JPMorgan Chase Bank. The pricing reflects an innovative approach to secure funding while minimizing direct capital market exposure.

The Pricing Framework

In the intricate mechanisms of the offering, ONE Gas has collaborated with JPMorgan as the sole underwriter, who will facilitate the sale of the shares on the New York Stock Exchange and potentially other markets. Importantly, the underwriter has been granted an option to acquire up to 375,000 additional shares, a decision that ONE Gas will evaluate based on market conditions and operational needs. This flexibility allows the company to optimize its capital structure while meeting the investment interests of its stakeholders.

Anticipated Closing and Use of Proceeds

The offering is projected to conclude on May 12, 2025, pending the fulfillment of customary closing conditions. While ONE Gas will not receive immediate proceeds from the initial sale of shares by the forward seller, the organization is prepared to capitalize on anticipated net proceeds for various corporate functions. These may include debt repayment, working capital allocation, and funding capital projects aimed at enhancing operational efficacy.

Corporate Outlook and Market Position

Headquartered in Tulsa, Oklahoma, ONE Gas holds a robust position as one of the largest regulated natural gas utilities in the U.S., servicing over 2.3 million customers across Kansas, Oklahoma, and Texas. The operational segments include Kansas Gas Service, Oklahoma Natural Gas, and Texas Gas Service - each representing a significant market share in their respective states.

The company is well-integrated in the SP MidCap 400 Index, reflecting its substantial impact within the energy utility sector. An anticipatory view towards the future amid evolving market dynamics emphasizes the necessity for strategic capital management and visionary leadership, paving the way for sustainable growth.

Forward-Looking Statements and Investor Considerations

In conveying their future outlook, ONE Gas acknowledges that the public offering and its anticipated results could be influenced by numerous factors including market conditions, regulatory changes, and operational contingencies. Such forward-looking statements serve as essential reflections of the company’s strategies and expectations; however, uncertainties persist that could diverge from these projected outcomes.

Investors are encouraged to consider these dynamics as they pertain to the offering, recognizing that risks such as competition, regulatory frameworks, and macroeconomic instabilities may shape ONE Gas's financial trajectory and operational capabilities in the forthcoming quarters.

Conclusion

The current public offering represents a calculated stride towards fortifying ONE Gas, Inc.'s financial standing and operational flexibility as it strives to cater effectively to its growing customer base. With a clear focus on strategic growth initiatives, ONE Gas is poised to navigate the complexities of the natural gas market, ensuring sustainable and reliable service delivery to its customers in the years to come. As the offering complications unfold, interested parties—including investors and market observers—should remain vigilant regarding developments and implications stemming from this critical financial maneuver.