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ONE Gas Releases Financial Guidance for 2026

In a recent announcement, ONE Gas, Inc. (NYSE: OGS) outlined its financial guidance for the year 2026, updating its growth projections and capital investment strategies. This announcement is significant for stakeholders, including investors and customers, who are keen to understand the company’s economic stability and growth potential.

Financial Outlook for 2026

As ONE Gas gears up for 2026, it has set its net income expectations in the range of $294 million to $302 million. The earnings per diluted share are projected to fall between $4.65 and $4.77, with a midpoint suggesting that net earnings will about $298 million and earnings per share reaching approximately $4.71. These figures indicate a promising outlook, supported by expected customer growth and new rates, though they will be slightly offset by rising operating expenses and depreciation costs associated with capital investments.

Commenting on the projections, CEO Robert S. McAnnally expressed confidence in the company’s ability to harness new growth opportunities while maintaining a commitment to safety and affordability. This balance is critical in ensuring that the needs of evolving customer bases are addressed adequately.

Targeted Capital Investments

The capital investment plan for 2026 is robust, with anticipated expenses reaching approximately $800 million. These funds are earmarked primarily for system integrity and replacement projects. In addition, ONE Gas is allocating about $230 million for expanding services to new customers, which is significant, especially with ongoing growth opportunities in Texas and Oklahoma.

According to the guidance, the average rate base anticipated for 2026 is around $6.3 billion, reflecting the company’s commitment to continuous improvement and customer service expansion.

Five-Year Growth Predictions

Looking beyond the immediate future, ONE Gas also provided insights into its expectations through 2030. The company anticipates an average annual growth rate for net income between 7% and 9%, with earnings per share set to grow at an average of 5% to 7%.

Moreover, total capital investments, including asset removal costs, are projected to range from $800 million to $900 million yearly throughout this period, cumulatively totaling around $4.3 billion. This budget will ensure that the estimated average rate base can increase effectively, supporting continued operational and customer service improvements.

Managing Operating Costs and Financing

In terms of operating costs, ONE Gas expects annual increases of roughly 3% to 4% over the next five years. This is a notable reduction compared to prior guidance of a 4% increase, indicating improved operational efficiency or potentially lowering the cost burden on customers.

For funding its growth plans, the company estimates that approximately $1.3 billion in long-term financing will be necessary between 2026 and 2030, with around 30% likely coming from equity. Forward sale agreements covering about 2.9 million shares at an average price of $78 contribute to this strategy, suggesting a proactive approach toward capital management.

Shareholder Returns

In line with previous management strategies, ONE Gas anticipates maintaining an average annual dividend growth rate of 1% to 2% through 2030, subject to board approval. This projection signifies the company’s intention to reward shareholders while also reinvesting in growth.

Conference Call Details

To discuss these updates, ONE Gas management will host a conference call on December 2, 2025, at 8 a.m. Eastern Standard Time. During this call, additional details regarding the financial guidance and growth strategies will be shared. For those unable to join, a replay will be available on the ONE Gas website.

In conclusion, ONE Gas is strategically positioned for both immediate and long-term growth in the natural gas utility sector. By focusing on substantial capital investments, managing operating costs, and updating its financial guidance, the company aims to meet customer demands while ensuring sustainable financial performance.