One Gas (OGS) Reports Fourth Quarter And Full Year 2024 Financial Earnings Results

ONE Gas, Inc. (OGS) today announced its financial results for the latest quarter, showcasing a significant earnings per share (EPS) beat. The company reported an EPS of $57,415, far surpassing the estimated $1.33. However, the revenue figures did not meet expectations, with the company posting $630,703 in revenue, falling short of the estimated $973.6 million.

Key Highlights:

• ONE Gas reported a fourth quarter 2024 net income of $77.0 million, or $1.34 per diluted share, and a full year net income of $222.9 million, or $3.91 per diluted share.
• The company increased its dividend for the first quarter of 2025 by 1 cent to $0.67 per share.
• Operating income for the fourth quarter was $124.3 million, reflecting increases from new rates and customer growth in Oklahoma and Texas.
• Full year 2024 capital expenditures and asset removal costs were $762.1 million, primarily for system integrity and service extension.
• ONE Gas expects 2025 net income to be between $254 million and $261 million, with earnings per diluted share of $4.20 to $4.32.
• Capital investments for 2025 are projected to be approximately $750 million, focusing on system integrity and replacement projects.

Summary:

ONE Gas, Inc. reported strong financial results for the fourth quarter and full year 2024, with net income reaching $77.0 million for the quarter and $222.9 million for the year. The company’s performance was bolstered by strategic fiscal planning, regulatory strategies, and disciplined management of operations and maintenance expenses. Robert S. McAnnally, president and CEO, emphasized the company’s readiness to serve a growing customer base while enhancing system safety and reliability. The company also increased its dividend for the first quarter of 2025, reflecting confidence in its financial stability and future growth prospects.

The company’s operating income for the fourth quarter was $124.3 million, driven by new rates and customer growth in key regions such as Oklahoma and Texas. Despite warmer-than-normal weather, which was 24.3% above average, the impact on operating income was mitigated by weather normalization mechanisms. For the full year, capital expenditures and asset removal costs totaled $762.1 million, focusing on system integrity and service extension. Looking ahead, ONE Gas projects 2025 net income to be between $254 million and $261 million, with significant capital investments planned to ensure continued growth and infrastructure development.

ONE Gas, Inc. (OGS) has experienced a notable price trajectory over the past year, with a remarkable 24.06% increase, reflecting strong investor confidence. However, the recent three-month period has seen a decline of 5.30%, suggesting some short-term volatility. Despite this, the six-month gain of 9.11% indicates a resilient recovery from any mid-year dips. The company’s price-to-earnings ratio stands at 18.40, which is relatively moderate, suggesting that the stock is reasonably valued given its earnings. However, the fundamental metrics reveal some challenges, with a negative two-year compound annual growth rate (CAGR) in both earnings per share (-1.77%) and revenue (-6.47%), indicating potential headwinds in growth. The return on invested capital is modest at 5.41%, and the net profit margin of 9.53% suggests efficient cost management. Overall, while ONE Gas, Inc. shows promising price performance, the underlying fundamentals highlight areas that may require strategic focus to sustain long-term growth.

ONE Gas, Inc., together with its subsidiaries, operates as a regulated natural gas distribution utility company in the United States. The company operates through three divisions: Oklahoma Natural Gas, Kansas Gas Service, and Texas Gas Service. It provides natural gas distribution services to 2.2 million customers in three states. It serves residential, commercial, and transportation customers. As of December 31, 2021, it operated approximately 41,600 miles of distribution mains; and 2,400 miles of transmission pipelines, as well as had 51.4 billion cubic feet of natural gas storage capacity. ONE Gas, Inc. was founded in 1906 and is headquartered in Tulsa, Oklahoma.