#USA #Tulsa #Financial Guidance #ONE Gas #Gas Service

ONE Gas Reports Second Quarter 2025 Financial Results

ONE Gas, Inc. (NYSE: OGS) revealed its second quarter financial performance for 2025 on August 5, showing significant growth in revenue, net income, and an optimistic outlook for the remainder of the year. The company's president and CEO, Robert S. McAnnally, attributed these results to strong operational management and effective cost strategies.

Financial Highlights

The second quarter net income rose to $32.0 million, translating to $0.53 per diluted share, an increase from $27.2 million or $0.48 per diluted share in the same quarter last year. Year-to-date figures show net income of $151.5 million, corresponding to $2.51 per diluted share, as opposed to $126.6 million or $2.23 per diluted share in 2024.

In light of these results, ONE Gas has increased its 2025 diluted earnings per share guidance from a previous estimate of $4.20 to $4.32, raising it to a range of $4.32 to $4.42, indicating strong confidence in operational performance. Additionally, the board of directors declared a quarterly dividend of $0.67 per share, reflecting the company’s commitment to returning value to shareholders. This dividend is scheduled for payment on September 3, 2025, with record shareholders as of August 18, 2025.

Detailed Financial Performance

The improved financial performance can be observed in the operating income, which was reported at $71.9 million, up from $69.3 million in Q2 of 2024. This growth is attributed to several factors:

• - An increase of $21.1 million due to new rates implemented.
• - A rise in sales volumes, yielding an additional $2.1 million, despite weather effects being normalized through regulatory mechanisms.
• - Residential sales grew by $1.5 million, primarily from customer progress in Oklahoma and Texas.

However, the progress was partially negated by increased costs in several areas:

• - A $6.8 million hike in depreciation and amortization due to added capital investments.
• - Employee-related expenses increased by $5.7 million.
• - Ad valorem tax expenses rose by $5.0 million.

Weather conditions have notably influenced operational income; this quarter was 19% warmer than normal but also 45% colder than the previous year’s second quarter, balancing out due to established regulatory mechanisms.

Excluding interests related to KGSS-I securitized bonds, net interest expenses decreased by $1.3 million because of a lower weighted-average interest rate on commercial paper compared to last year.

Year-to-Date Performance

In the first half of 2025, ONE Gas reported an operating income of $252.4 million, compared to $215.1 million during the same timeframe in the prior year. Key drivers for this improvement include:

• - An increase of $73.0 million attributed to new rates.
• - A $3.9 million increase in residential sales primarily from customer growth in Oklahoma and Texas.

There were offsets to this growth, including rising depreciation and amortization costs of $11.9 million and a $9.7 million increase in ad valorem taxes.

Regulatory Review and Future Outlook

In regulatory developments, Texas Gas Service filed a significant rate case targeting a $41.1 million revenue increase intended to unify several service areas into one division. New rates stemming from this case are expected to be effective in early 2026. Similarly, Oklahoma Natural Gas has finalized a settlement resulting in a $41.1 million base revenue increase after negotiations on the annual performance-based rate change.

Given the current operational successes and regulation frameworks, ONE Gas has elevated its 2025 financial guidance and continues to prioritize deploying safe and reliable service while simultaneously focusing on capital expenditure, estimated at $750 million for the year.

Earnings Call Information

The management team will also host a conference call to discuss these financial results and outlook on August 6, 2025, scheduled for 11:00 AM EDT. Access to the call can be via telephone or streamed through their investor website, with replays available for those unable to join live.

Conclusion

ONE Gas’s positive trajectory in financial performance for the second quarter of 2025, coupled with robust future guidance, showcases the company’s strategic planning and strong operational capabilities.

For further updates and financial information, visit onegas.com.