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ONE Gas Annual Financial Results for 2024

ONE Gas, Inc. (NYSE: OGS) has recently released its financial results for the fourth quarter and full year of 2024, showcasing a commendable performance. With diluted earnings per share of $1.34 for the fourth quarter and $3.91 for the entire year, the company's financial health underscores its strategic execution and operational management.

Overview of Financial Performance

The company's net income for the fourth quarter reached $77.0 million, an increase from $70.7 million in the same period last year. Full-year net income was reported at $222.9 million, slightly down from $231.2 million in 2023. Robert S. McAnnally, President and Chief Executive Officer, attributed this solid financial performance to prudent fiscal strategies and disciplined management over operational expenses.

Key Highlights

• - Fourth Quarter 2024 Results:

- Operating income was $124.3 million, compared to $107.1 million from the previous year.
- The company benefitted from new rates, leading to a significant increase in residential sales due to net customer growth in Oklahoma and Texas.
- Total capital expenditures and asset removal costs amounted to $190.4 million, reflecting ongoing investments in system integrity and service extensions.

• - Full Year 2024 Results:

- Operating income totaled $399.0 million, compared to $377.6 million in 2023.
- The firm invested $762.1 million in capital expenditures and asset removal, an increase from $728.7 million last year, focusing on enhancing service reliability and extending reach.

Weather and Its Impact

Interestingly, the quarter experienced weather that was approximately 24.3% warmer than normal. Fortunately, ONE Gas has implemented weather normalization mechanisms that helped mitigate the adverse impact on operating income despite this warmer environment.

Future Projections and Regulations

Looking ahead, ONE Gas anticipates net income for 2025 to be in the range of $254 million to $261 million with earnings projected between $4.20 and $4.32 per diluted share. The company is set to continue its investment strategies aimed at system integrity, with forecasts of $750 million for capital investments, which includes expansions to serve new customers.

In regulatory updates, Texas Gas Service has filed for a $15.4 million increase in rates for early 2025, aimed at enhancing the reliability of natural gas services across various service areas.

Conclusion

Overall, the results for ONE Gas in 2024 reflect strong operational control and strategic investments to ensure growth. The leadership is committed to maintaining reliability and safety in its services while expanding its customer base across Texas, Oklahoma, and Kansas. As the energy market evolves, ONE Gas appears well-positioned to navigate upcoming challenges and opportunities, ensuring a continued focus on performance enhancement for its stakeholders.

To gain further insights into these developments, interested parties can access the earnings call and webcast scheduled for February 20, 2025, where the management team will discuss these results in more detail.