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ONE Gas Announces Impressive Q1 2026 Financial Results

On May 4, 2026, ONE Gas, Inc. (NYSE: OGS) released its financial results for the first quarter of 2026, showcasing significant growth despite the unusual weather conditions experienced during the period. The company reported a net income of $128.7 million, translating to $2.04 per diluted share, which marks an increase from the previous year’s $119.4 million or $1.98 per diluted share.

This remarkable performance illustrates the resilience of ONE Gas’s business model and reflects its ability to provide value to its customers while maintaining affordability. CEO Robert S. McAnnally noted, “Our positive results through a historically warm winter underscore our robust business strategy and commitment to delivering long-term value.” Moreover, the company has confidently reaffirmed its financial guidance, anticipating continued growth throughout 2026.

Financial Highlights

• - Adjusted Net Income: The adjusted net income for Q1 2026 reached $133.4 million, or $2.11 per diluted share, compared to $120.1 million, or $1.99 per diluted share, in the same quarter last year.
• - Operating Income: The operating income for the quarter was $189.6 million, an increase from $180.5 million in Q1 2025, primarily driven by a $27.3 million rise in new customer rates.
• - Impact of Weather: Notably, the weather across service areas was unusually warm, being 20.5 percent warmer than the historical average and 24.6 percent warmer than the previous year. However, the company's mechanisms for weather normalization successfully mitigated the adverse effects on operating income.

Growth and Investment Plans

In addition to its solid performance, ONE Gas has outlined strategic actions moving forward. In February 2026, the company entered an at-the-market equity distribution agreement, allowing for the issuance and sale of common stock valued up to $225 million. This initiative will likely support future investments and ongoing projects aimed at enhancing operational efficiencies.

Furthermore, ONE Gas has been recognized for its commitment to safety, receiving the American Gas Association Safety Achievement Award for the ninth consecutive year, a testament to the company’s dedication to employee safety.

Dividend Declaration

In a positive signal to its shareholders, the Board of Directors also declared a quarterly dividend of $0.68 per share, which will be payable on June 2, 2026. This brings the annualized dividend to $2.72 per share, aligning with the company's practice of rewarding its investors even amid fluctuating market conditions.

Regulatory Activities and Future Outlook

The company is also actively engaged in regulatory discussions. Recent changes, such as the amendment of the Gas System Reliability Surcharge (GSRS) statute in Kansas, are expected to enhance the recovery of investment costs and contributions to infrastructure reliability, effective from July 1, 2026.

ONE Gas reaffirms its net income guidance for 2026, estimating a range from $294 million to $302 million, or $4.65 to $4.77 per diluted share. Investments amounting to approximately $800 million are planned for the year, which includes around $230 million for extending service to new customers.

Earnings Conference Call

Investors and analysts will have the opportunity to hear from the ONE Gas executive management team during the scheduled conference call on May 5, 2026, at 11 a.m. EDT. This call will discuss the financial results in further detail and provide insights into the company’s strategic direction.

Overall, ONE Gas continues to present a strong financial profile, backed by strategic initiatives and a focus on safety and customer service.

Conclusion

As ONE Gas moves forward in 2026, it remains committed to driving operational excellence and adapting to the regulatory landscape, reinforcing its status as one of the largest natural gas utilities in the United States, catering to over 2.3 million customers across Kansas, Oklahoma, and Texas.