ONE Gas Announces Fourth Quarter and Full Year 2025 Financial Results; Releases Non-GAAP Adjusted Financial Guidance
Rhea-AI Summary
ONE Gas (NYSE: OGS) reported Q4 2025 EPS $1.42 and FY2025 EPS $4.37 (GAAP), with adjusted EPS of $1.48 Q4 and $4.48 FY. The company provided 2026 adjusted guidance of $4.83–$4.95 per share and expects ~$800 million capital investments in 2026.
Management announced a $0.01 quarterly dividend raise to $0.68 per share and noted settlement of 2,633,700 million shares under forward contracts for net proceeds of $205.0 million.
Positive
- FY2025 GAAP EPS increased to $4.37 (from $3.91 in 2024)
- Adjusted FY2025 EPS of $4.48 supports 2026 guidance
- 2026 adjusted EPS guidance of $4.83–$4.95
- Planned $800 million capital investment in 2026, including $230 million for customer extensions
- Quarterly dividend increased to $0.68 per share, payable March 6, 2026
Negative
- Operating expenses rose from higher employee costs and increased depreciation
- Weather 22.7% warmer than normal in Q4 2025 reduced demand
- Capital expenditures remained high at $759.5 million for 2025, sustaining cash needs
Key Figures
Market Reality Check
Peers on Argus
OGS slipped 0.35% with most regulated gas peers also lower (BKH, SR, NJR, MDU down; SWX up 0.59%), suggesting a modestly weak utility tape rather than a clear sector-wide move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 03 | Q3 2025 earnings | Positive | +0.5% | Q3 2025 earnings growth and narrowed full-year guidance with higher rates. |
| Aug 05 | Q2 2025 earnings | Positive | +1.6% | Strong Q2 2025 results and an increase to full-year 2025 guidance. |
| Feb 19 | FY 2024 results | Neutral | -0.2% | Q4 and 2024 results with higher Q4 income but lower full-year EPS. |
| Nov 04 | Q3 2024 earnings | Positive | +0.8% | Q3 2024 update with higher operating income and raised 2024 guidance. |
| Aug 05 | Q2 2024 earnings | Neutral | -0.7% | Q2 2024 earnings with reaffirmed full-year guidance and capex plans. |
Recent earnings releases typically showed modest share-price moves with generally positive or stable guidance, indicating measured reactions to steady regulated-utility results.
Over the past five earnings-related announcements from Aug 2024 through Nov 2025, ONE Gas regularly reported net income growth supported by new rates and capital investment while refining guidance within relatively narrow ranges. The company has repeatedly highlighted multi-year capital plans and dividend stability. Today’s Q4 and full-year 2025 results, plus 2026 guidance and non-GAAP adjustments, continue that pattern of incremental improvement, regulatory-driven earnings visibility, and disciplined capital spending.
Historical Comparison
In the last five earnings releases, OGS showed an average move of 0.4%, reflecting typically muted reactions to steady, rate-driven earnings updates and guidance refinements.
Earnings updates from 2024 through 2025 show a progression of increasing operating income and refined guidance, supported by new rates, rising capital investment, and continued dividend growth.
Market Pulse Summary
This announcement highlights solid FY 2025 results, with EPS of $4.37 and adjusted EPS of $4.48, alongside 2026 adjusted guidance of $4.83–$4.95. Investors may focus on how new rates and regulatory mechanisms offset warm weather, the sustainability of capital plans near $800 million annually, and the impact of prior equity issuance. Tracking future rate cases, guidance updates, and capital allocation decisions will be important.
Key Terms
non-gaap financial
rate case regulatory
AI-generated analysis. Not financial advice.
Analyst call and webcast scheduled tomorrow, Feb. 19 at 11 a.m. EST
"Our team delivered strong operational and financial results in 2025, reflecting disciplined execution and a commitment to safely serving our communities," said Robert S. McAnnally, president and chief executive officer. "Looking ahead, we see meaningful opportunity in both residential and large-load growth, supporting long-term value creation and affordability for our customers."
FINANCIAL RESULTS & HIGHLIGHTS
- Fourth quarter 2025 net income was
$86.3 million $1.42 $77.0 million $1.34 - Fourth quarter 2025 adjusted net income was
$89.7 million $1.48 $77.5 million $1.35 - Full year 2025 net income was
$264.2 million $4.37 $222.9 million $3.91 - Full year 2025 adjusted net income was
$271.0 million $4.48 $224.8 million $3.94 - In December, the Company settled 2,633,700 million shares of our common stock under forward contracts for net proceeds of
$205.0 million - Full year 2025 capital expenditures and asset removal costs were
$759.5 million $762.1 million - On Jan. 20, 2026, ONE Gas increased the dividend for the first quarter 2026 by
1 cent to$0.68 $2.72
FOURTH QUARTER 2025 FINANCIAL PERFORMANCE
ONE Gas reported operating income of
- an increase of
$23.8 million - an increase of
$1.3 million Oklahoma andTexas .
The increases were partially offset by:
- an increase of
$4.2 million - an increase of
$3.8 million - an increase of
$3.3 million
Weather was 22.7 percent warmer than normal for the three months ended Dec. 31, 2025. The impact on operating income was mitigated by weather normalization mechanisms.
Excluding interest related to KGSS-I securitized bonds, net interest expense decreased
Income tax expense includes a credit for amortization of the regulatory liability associated with excess deferred income taxes (EDIT) of
Capital expenditures and asset removal costs were
FULL YEAR 2025 FINANCIAL PERFORMANCE
Operating income for the twelve-month 2025 period was
- an increase of
$116.0 million - an increase of
$6.6 million
These increases were partially offset by:
- an increase of
$20.6 million - an increase of
$17.0 million - an increase of
$14.7 million - a carrying charge of
$2.9 million Oklahoma customers from the settlement of a disputed gas purchase invoice.
Excluding interest related to KGSS-I securitized bonds, net interest expense decreased
Income tax expense includes a credit for amortization of the regulatory liability associated with EDIT of
Capital expenditures and asset removal costs were
In December, the Company settled 2,633,700 million shares of our common stock under forward contracts for net proceeds of
REGULATORY ACTIVITIES UPDATE
In June 2025, Texas Gas Service filed a rate case for customers in the Central-Gulf, West-North, and Rio Grande Valley service areas. The Railroad Commission of
2026 FINANCIAL GUIDANCE
On Dec. 1, 2025, ONE Gas announced that its 2026 net income is expected to be in the range of
The Company expects 2026 adjusted net income to be in the range of
ONE Gas expects long‑term adjusted net income growth of 7 to 9 percent and adjusted net income per diluted share growth of 5 to 7 percent, consistent with its established five‑year financial outlook. These growth rates are based on adjusted 2025 actual results, including adjusted net income of
Capital investments, including asset removal costs, are expected to be approximately
EARNINGS CONFERENCE CALL AND WEBCAST
The ONE Gas executive management team will host a conference call on Thursday, February 19, 2026, at 11 a.m. Eastern Standard Time (10 a.m. Central Standard Time). The call also will be carried live on the ONE Gas website.
To participate in the telephone conference call, dial 833-470-1428, passcode 246604, or log on to www.onegas.com/investors and select Events and Presentations.
If you are unable to participate in the conference call or the webcast, a replay will be available on the ONE Gas website, www.onegas.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 866-813-9403, passcode 437369.
NON-GAAP DISCLOSURE STATEMENT
This press release includes financial results and guidance for ONE Gas with respect to adjusted net income and adjusted net income per share, which are non-GAAP financial measures as defined by the Securities and Exchange Commission. Adjusted net income and adjusted net income per share are calculated as GAAP net income plus the deferral of an equity portion of a carrying cost attributable to shareholders' investment capitalized for regulatory purposes but not for financial reporting purposes. These carrying costs relate to property, plant and equipment that has been placed in service, but not yet reflected in base rates. Adjusted net income and adjusted net income per share should not be considered in isolation or as a substitute for GAAP net income or GAAP earnings per share.
Management believes these non‑GAAP measures provide useful information because they offer a more complete view of our overall regulatory economics, reflect the period-specific effects of certain regulatory mechanisms designed to mitigate regulatory lag associated with property, plant and equipment placed in service prior to regulatory action, and reflect the impact of regulatory timing differences that arise under the Company's rate-setting framework. These adjustments, net of applicable tax effects, are expected to recur as a result of the Company's regulatory framework and are a consistent part of our earnings profile. A reconciliation of the Company's GAAP net income and GAAP earnings per share to adjusted net income and adjusted net income per share is provided in the Appendix.
ONE Gas, Inc. (NYSE: OGS) is a
Headquartered in
For more information and the latest news about ONE Gas, visit onegas.com and follow its social channels: @ONEGas, Facebook, LinkedIn and YouTube.
Some of the statements contained and incorporated in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The forward-looking statements relate to our anticipated financial performance, liquidity, management's plans and objectives for our future operations, our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled," "likely," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements, which are applicable only as of the date of this news release. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, costs, liquidity, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:
- our ability to recover costs, income taxes and amounts equivalent to the cost of property, plant and equipment, regulatory assets and our allowed rate of return in our regulated rates or other recovery mechanisms;
- cyber-attacks, which, according to experts, continue to increase in volume and sophistication, or breaches of technology systems that could disrupt our operations or result in the loss or exposure of confidential or sensitive customer, employee, vendor, counterparty, or Company information; further, increased remote working arrangements have required enhancements and modifications to our information technology infrastructure (e.g. Internet, Virtual Private Network, remote collaboration systems, etc.), and any failures of the technologies, including third-party service providers, that facilitate working remotely could limit our ability to conduct ordinary operations or expose us to increased risk or effect of an attack;
- our ability to manage our operations and maintenance costs;
- changes in regulation of natural gas distribution services, particularly those in
Oklahoma ,Kansas andTexas ; - the economic climate and, particularly, its effect on the natural gas requirements of our residential and commercial customers;
- the length and severity of a pandemic or other health crisis which could significantly disrupt or prevent us from operating our business in the ordinary course for an extended period;
- competition from alternative forms of energy, including, but not limited to, electricity, solar power, wind power, geothermal energy and biofuels;
- adverse weather conditions and variations in weather, including seasonal effects on demand and/or supply, the occurrence of severe storms in the territories in which we operate, climate change, and the related effects on supply, demand, and costs;
- indebtedness could make us more vulnerable to general adverse economic and industry conditions, limit our ability to borrow additional funds and/or place us at competitive disadvantage compared with competitors;
- our ability to secure reliable, competitively priced and flexible natural gas transportation, storage, and supply, including decisions by natural gas producers to reduce production or shut-in producing natural gas wells and expiration of existing supply and transportation and storage arrangements that are not replaced with contracts with similar terms and pricing;
- our ability to complete necessary or desirable expansion or infrastructure development projects, which may delay or prevent us from serving our customers or expanding our business;
- operational and mechanical hazards or interruptions;
- adverse labor relations;
- the effectiveness of our strategies to reduce earnings lag, revenue protection strategies and risk mitigation strategies, which may be affected by risks beyond our control such as commodity price volatility, counterparty performance or creditworthiness and interest rate risk;
- the capital-intensive nature of our business, and the availability of and access to, in general, funds to meet our debt obligations prior to or when they become due and to fund our operations and capital expenditures, either through (i) cash on hand, (ii) operating cash flow, or (iii) access to the capital markets and other sources of liquidity;
- our ability to obtain capital on commercially reasonable terms, or on terms acceptable to us, or at all;
- limitations on our operating flexibility, earnings and cash flows due to restrictions in our financing arrangements;
- cross-default provisions in our borrowing arrangements, which may lead to our inability to satisfy all of our outstanding obligations in the event of a default on our part;
- changes in the financial markets during the periods covered by the forward-looking statements, particularly those affecting the availability of capital and our ability to refinance existing debt and fund investments and acquisitions to execute our business strategy;
- actions of rating agencies, including the ratings of debt, general corporate ratings and changes in the rating agencies' ratings criteria;
- changes in inflation and interest rates;
- our ability to recover the costs of upstream transportation, storage, and natural gas purchased for our customers and any related financing required to support our purchase of natural gas supply;
- impact of potential impairment charges;
- volatility and changes in markets for natural gas and our ability to secure additional and sufficient liquidity on reasonable commercial terms to cover costs associated with such volatility;
- possible loss of local distribution company franchises or other adverse effects caused by the actions of municipalities;
- payment and performance by counterparties and customers as contracted and when due, including our counterparties maintaining ordinary course terms of supply and payments;
- changes in existing or the addition of new environmental, safety, tax, cybersecurity and other laws or regulations to which we and our subsidiaries are subject, including those that may require significant expenditures, significant increases in operating costs or, in the case of noncompliance, substantial fines or penalties;
- the effectiveness of our risk-management policies and procedures, and employees violating our risk-management policies;
- the uncertainty of estimates, including accruals and costs of environmental remediation;
- advances in technology, including technologies that increase efficiency or that improve electricity's competitive position relative to natural gas;
- population growth rates and changes in the demographic patterns of the markets we serve in
Oklahoma ,Kansas andTexas , and economic conditions in these areas; - acts of nature and naturally occurring disasters;
- political unrest and the potential effects of threatened or actual terrorism and war;
- the sufficiency of insurance coverage to cover losses;
- the effects of our strategies to reduce tax payments;
- changes in accounting standards;
- changes in corporate governance standards;
- existence of material weaknesses in our internal controls;
- our ability to comply with all covenants in our indentures and the ONE Gas Credit Agreement, a violation of which, if not cured in a timely manner, could trigger a default of our obligations;
- our ability to attract and retain talented employees, management and directors, and shortage of skilled-labor;
- unexpected increases in the costs of providing health care benefits, along with pension and postemployment health care benefits, as well as declines in the discount rates on, declines in the market value of the debt and equity securities of, and increases in funding requirements for, our defined benefit plans; and
- our ability to successfully complete merger, acquisition or divestiture plans, regulatory or other limitations imposed as a result of a merger, acquisition or divestiture, and the success of the business following a merger, acquisition or divestiture.
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our Annual Report. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
APPENDIX | ||||||||
ONE Gas, Inc. | ||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||
Three Months Ended | Twelve Months Ended | |||||||
December 31, | December 31, | |||||||
2025 | 2024 | 2025 | 2024 | |||||
(Thousands of dollars, except per share amounts) | ||||||||
Total revenues | $ 689,372 | $ 630,703 | $ 2,427,428 | $ 2,083,558 | ||||
Cost of natural gas | 291,895 | 263,740 | 998,913 | 778,333 | ||||
Operating expenses | ||||||||
Operations and maintenance | 155,017 | 144,853 | 558,497 | 530,256 | ||||
Depreciation and amortization | 79,305 | 75,452 | 317,256 | 296,699 | ||||
General taxes | 23,423 | 22,348 | 95,295 | 79,371 | ||||
Total operating expenses | 257,745 | 242,653 | 971,048 | 906,326 | ||||
Operating income | 139,732 | 124,310 | 457,467 | 398,899 | ||||
Other income, net | 1,348 | 105 | 6,801 | 7,572 | ||||
Interest expense, net | (36,460) | (39,760) | (142,809) | (147,235) | ||||
Income before income taxes | 104,620 | 84,655 | 321,459 | 259,236 | ||||
Income taxes | (18,314) | (7,633) | (57,235) | (36,386) | ||||
Net income | $ 86,306 | $ 77,022 | $ 264,224 | $ 222,850 | ||||
Earnings per share | ||||||||
Basic | $ 1.43 | $ 1.35 | $ 4.39 | $ 3.92 | ||||
Diluted | $ 1.42 | $ 1.34 | $ 4.37 | $ 3.91 | ||||
Average shares (thousands) | ||||||||
Basic | 60,272 | 57,000 | 60,161 | 56,826 | ||||
Diluted | 60,777 | 57,415 | 60,513 | 57,033 | ||||
Dividends declared per share of stock | $ 0.67 | $ 0.66 | $ 2.68 | $ 2.64 | ||||
APPENDIX | |||
ONE Gas, Inc. | |||
CONSOLIDATED BALANCE SHEETS | |||
December 31, | December 31, | ||
2025 | 2024 | ||
Assets | (Thousands of dollars) | ||
Property, plant and equipment | |||
Property, plant and equipment | $ 9,734,150 | $ 9,124,134 | |
Accumulated depreciation and amortization | 2,611,952 | 2,478,261 | |
Net property, plant and equipment | 7,122,198 | 6,645,873 | |
Current assets | |||
Cash and cash equivalents | 10,620 | 57,995 | |
Restricted cash and cash equivalents | 23,107 | 20,542 | |
Total cash, cash equivalents and restricted cash and cash equivalents | 33,727 | 78,537 | |
Accounts receivable, net | 461,631 | 408,448 | |
Materials and supplies | 97,595 | 91,662 | |
Income tax receivable | 55,552 | 53,624 | |
Natural gas in storage | 176,451 | 161,184 | |
Regulatory assets | 49,504 | 101,210 | |
Other current assets | 41,424 | 35,216 | |
Total current assets | 915,884 | 929,881 | |
Goodwill and other assets | |||
Regulatory assets | 256,225 | 278,006 | |
Securitized intangible asset, net | 233,786 | 265,951 | |
Goodwill | 157,953 | 157,953 | |
Pension and other postemployment benefits | 47,012 | 42,882 | |
Other assets | 120,026 | 105,025 | |
Total goodwill and other assets | 815,002 | 849,817 | |
Total assets | $ 8,853,084 | $ 8,425,571 | |
APPENDIX | |||
ONE Gas, Inc. | |||
CONSOLIDATED BALANCE SHEETS | |||
(Continued) | |||
December 31, | December 31, | ||
2025 | 2024 | ||
Equity and Liabilities | (Thousands of dollars) | ||
Equity and long-term debt | |||
Common stock, authorized 250,000,000 shares; issued and outstanding 62,692,392 shares at December 31, 2025; | $ 627 | $ 599 | |
Paid-in capital | 2,530,137 | 2,294,469 | |
Retained earnings | 909,355 | 809,606 | |
Accumulated other comprehensive income (loss) | 4 | (126) | |
Total equity | 3,440,123 | 3,104,548 | |
Other long-term debt, excluding current maturities, net of issuance costs | 2,133,018 | 2,131,718 | |
Securitized utility tariff bonds, excluding current maturities, net of issuance costs | 223,020 | 253,568 | |
Total long-term debt, excluding current maturities, net of issuance costs | 2,356,038 | 2,385,286 | |
Total equity and long-term debt | 5,796,161 | 5,489,834 | |
Current liabilities | |||
Current maturities of other long-term debt, net of issuance costs | 249,674 | 14 | |
Current maturities of securitized utility tariff bonds, net of issuance costs | 30,566 | 28,956 | |
Notes payable | 737,400 | 914,600 | |
Accounts payable | 222,102 | 261,321 | |
Accrued taxes other than income | 75,568 | 75,608 | |
Regulatory liabilities | 57,277 | 22,525 | |
Customer deposits | 52,871 | 56,243 | |
Other current liabilities | 106,400 | 99,009 | |
Total current liabilities | 1,531,858 | 1,458,276 | |
Deferred credits and other liabilities | |||
Deferred income taxes | 963,874 | 891,738 | |
Regulatory liabilities | 451,620 | 467,563 | |
Other deferred credits | 109,571 | 118,160 | |
Total deferred credits and other liabilities | 1,525,065 | 1,477,461 | |
Commitments and contingencies | |||
Total liabilities and equity | $ 8,853,084 | $ 8,425,571 | |
APPENDIX | |||
ONE Gas, Inc. | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
Year Ended December 31, | |||
2025 | 2024 | ||
(Thousands of dollars) | |||
Operating activities | |||
Net income | $ 264,224 | $ 222,850 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 317,256 | 296,699 | |
Deferred income taxes | 49,507 | 106,522 | |
Share-based compensation expense | 14,791 | 13,733 | |
Provision for doubtful accounts | 8,207 | 6,705 | |
Proceeds from government securitization of winter weather event costs | — | — | |
Changes in assets and liabilities: | |||
Accounts receivable | (61,390) | (67,289) | |
Materials and supplies | (5,933) | (14,013) | |
Income tax receivable | (1,928) | (49,677) | |
Natural gas in storage | (15,267) | 25,913 | |
Asset removal costs | (52,268) | (58,952) | |
Accounts payable | (35,397) | (15,014) | |
Accrued taxes other than income | (40) | 6,815 | |
Customer deposits | (3,372) | (5,944) | |
Regulatory assets and liabilities - current | 68,397 | (90,829) | |
Regulatory assets and liabilities - noncurrent | 36,660 | 19,354 | |
Other assets and liabilities - current | (708) | (17,091) | |
Other assets and liabilities - noncurrent | (3,906) | (11,371) | |
Cash provided by operating activities | 578,833 | 368,411 | |
Investing activities | |||
Capital expenditures | (707,226) | (703,165) | |
Other investing expenditures | (12,724) | (10,402) | |
Other investing receipts | 4,626 | 6,072 | |
Cash used in investing activities | (715,324) | (707,495) | |
Financing activities | |||
Borrowings (repayments) of notes payable, net | (177,200) | 826,100 | |
Issuance of other long-term debt, net of premiums and discounts | 250,000 | 253,467 | |
Long-term debt financing costs | (432) | (2,193) | |
Repayment of other long-term debt | (15) | (773,013) | |
Repayment of securitized utility tariff bonds | (29,493) | (27,939) | |
Issuance of common stock | 212,183 | 252,379 | |
Dividends paid | (160,705) | (149,456) | |
Tax withholdings related to net share settlements of stock compensation | (2,657) | (1,111) | |
Cash provided by financing activities | 91,681 | 378,234 | |
Change in cash, cash equivalents, restricted cash and restricted cash equivalents | (44,810) | 39,150 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 78,537 | 39,387 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ 33,727 | $ 78,537 | |
Supplemental cash flow information: | |||
Cash paid for interest, net of amounts capitalized | $ 138,987 | $ 148,987 | |
Cash paid for other state income taxes | $ 540 | $ 366 | |
Cash received for state income taxes | $ (1,523) | $ (4,546) | |
Cash paid (received) for federal income taxes | $ 10,113 | $ (16,280) | |
APPENDIX
The following table reconciles the Company's GAAP net income and GAAP earnings per share to adjusted net income and adjusted net income per share:
ONE Gas, Inc. | ||||||||
Three Months Ended | Twelve Months Ended | |||||||
December 31, | December 31, | |||||||
2025 | 2024 | 2025 | 2024 | |||||
(Thousands of dollars, except per share amounts) | ||||||||
Net income - GAAP | $ 86,306 | $ 77,022 | $ 264,224 | $ 222,850 | ||||
Other income - deferred carrying cost(a) | 3,359 | 458 | 6,745 | 1,986 | ||||
Income taxes | — | — | — | — | ||||
Adjusted net income - non-GAAP | $ 89,665 | $ 77,480 | $ 270,969 | $ 224,836 | ||||
Earnings per share - GAAP | ||||||||
Basic | $ 1.43 | $ 1.35 | $ 4.39 | $ 3.92 | ||||
Diluted | $ 1.42 | $ 1.34 | $ 4.37 | $ 3.91 | ||||
Adjusted net income per share - non-GAAP | ||||||||
Basic | $ 1.49 | $ 1.36 | $ 4.50 | $ 3.96 | ||||
Diluted | $ 1.48 | $ 1.35 | $ 4.48 | $ 3.94 | ||||
Average shares (thousands) | ||||||||
Basic | 60,272 | 57,000 | 60,161 | 56,826 | ||||
Diluted | 60,777 | 57,415 | 60,513 | 57,033 | ||||
(a) The allowance for earnings on shareholders' investment capitalized for regulatory purposes but not for financial reporting purposes applied to property, plant and equipment placed in service, but not yet reflected in base rates as authorized by our regulators or state law. This increases book income but is non-taxable, creating a permanent tax difference. |
ONE Gas, Inc. | ||||||
2026 Financial Guidance: Reconciliation of non-GAAP to GAAP: | ||||||
Low | Mid | High | ||||
(Thousands of dollars, except per share amounts) | ||||||
Net income - GAAP | $ 294,000 | $ 298,000 | $ 302,000 | |||
Other income - deferred carrying cost(a) | 11,890 | 11,919 | 12,000 | |||
Income taxes | — | — | — | |||
Adjusted net income - non-GAAP | $ 305,890 | $ 309,919 | $ 314,000 | |||
Earnings per share - GAAP | ||||||
Basic | $ 4.67 | $ 4.73 | $ 4.79 | |||
Diluted | $ 4.65 | $ 4.71 | $ 4.77 | |||
Adjusted net income per share - non-GAAP | ||||||
Basic | $ 4.86 | $ 4.92 | $ 4.98 | |||
Diluted | $ 4.83 | $ 4.89 | $ 4.95 | |||
Average shares (thousands) | ||||||
Basic | 62,995 | 62,995 | 62,995 | |||
Diluted | 63,350 | 63,350 | 63,350 | |||
(a) The allowance for earnings on shareholders' investment capitalized for regulatory purposes but not for financial reporting purposes applied to property, plant and equipment placed in service, but not yet reflected in base rates as authorized by our regulators or state law. This increases book income but is non-taxable, creating a permanent tax difference. |
APPENDIX
ONE Gas, Inc.
KGSS-I SECURITIZATION
In November 2022, Kansas Gas Service Securitization I, L.L.C. (KGSS-I) issued
Revenues for the three months ended December 31, 2025, include
Revenues for the twelve months ended December 31, 2025, include
The following table summarizes the impact of KGSS-I on the consolidated balance sheets, for the periods indicated:
December 31, | December 31, | ||
2025 | 2024 | ||
(Thousands of dollars) | |||
Restricted cash and cash equivalents | $ 23,107 | $ 20,542 | |
Accounts receivable | 4,463 | 4,659 | |
Securitized intangible asset, net | 233,786 | 265,951 | |
Total assets | $ 261,356 | $ 291,152 | |
Current maturities of securitized utility tariff bonds, net of issuance costs | $ 30,566 | $ 28,956 | |
Accounts payable | 136 | 319 | |
Accrued interest | 5,894 | 6,568 | |
Securitized utility tariff bonds, excluding current maturities, net of discounts and issuance costs | 223,020 | 253,568 | |
Paid-in capital | 1,680 | 1,681 | |
Retained earnings | 60 | 60 | |
Total liabilities and equity | $ 261,356 | $ 291,152 | |
The following table summarizes the impact of KGSS-I on the consolidated statements of income, for the periods indicated:
Three Months Ended | Year Ended | ||||||
December 31, | December 31, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(Thousands of dollars) | |||||||
Operating revenues | $ 11,387 | $ 10,649 | $ 47,446 | $ 44,390 | |||
Operating expense | (110) | (111) | (442) | (443) | |||
Amortization expense | (7,688) | (6,559) | (32,164) | (27,668) | |||
Interest income | 125 | 132 | 551 | 671 | |||
Interest expense | (3,678) | (4,075) | (15,246) | (16,806) | |||
Income before income taxes | 36 | 36 | 145 | 144 | |||
Income taxes | — | — | — | (26) | |||
Net income | $ 36 | $ 36 | $ 145 | $ 118 | |||
APPENDIX | |||||||||||
ONE Gas, Inc. | |||||||||||
INFORMATION AT A GLANCE | |||||||||||
Three Months Ended | Year Ended | ||||||||||
December 31, | December 31, | ||||||||||
(Unaudited) | 2025 | 2024 | 2025 | 2024 | |||||||
(Millions of dollars) | |||||||||||
Natural gas sales | $ | 629.1 | $ | 573.4 | $ | 2,196.3 | $ | 1,864.1 | |||
Transportation revenues | 39.1 | 37.4 | 144.9 | 138.7 | |||||||
Securitization customer charges | 11.4 | 10.7 | 47.4 | 44.4 | |||||||
Other revenues | 9.8 | 9.2 | 38.8 | 36.4 | |||||||
Total revenues | $ | 689.4 | $ | 630.7 | $ | 2,427.4 | $ | 2,083.6 | |||
Cost of natural gas | 291.9 | 263.7 | 998.9 | 778.3 | |||||||
Operating costs | 178.4 | 167.3 | 653.8 | 609.6 | |||||||
Depreciation and amortization | 79.3 | 75.5 | 317.3 | 296.7 | |||||||
Operating income | $ | 139.8 | $ | 124.2 | $ | 457.4 | $ | 399.0 | |||
Net income | $ | 86.3 | $ | 77.0 | $ | 264.2 | $ | 222.9 | |||
Capital expenditures and asset removal costs | $ | 184.1 | $ | 190.4 | $ | 759.5 | $ | 762.1 | |||
Volumes (Bcf) | |||||||||||
Natural gas sales | |||||||||||
Residential | 34.9 | 33.7 | 114.1 | 104.1 | |||||||
Commercial and industrial | 11.2 | 10.8 | 40.3 | 36.9 | |||||||
Other | 0.8 | 0.6 | 3.0 | 2.1 | |||||||
Total sales volumes delivered | 46.9 | 45.1 | 157.4 | 143.1 | |||||||
Transportation | 56.8 | 57.3 | 216.9 | 221.0 | |||||||
Total volumes delivered | 103.7 | 102.4 | 374.3 | 364.1 | |||||||
Average number of customers (in thousands) | |||||||||||
Residential | 2,115 | 2,101 | 2,118 | 2,103 | |||||||
Commercial and industrial | 161 | 162 | 163 | 163 | |||||||
Other | 3 | 3 | 3 | 3 | |||||||
Transportation | 11 | 12 | 11 | 12 | |||||||
Total customers | 2,290 | 2,277 | 2,295 | 2,281 | |||||||
Heating Degree Days | |||||||||||
Actual degree days | 2,921 | 2,864 | 8,995 | 7,991 | |||||||
Normal degree days | 3,777 | 3,784 | 9,730 | 9,728 | |||||||
Percent colder (warmer) than normal weather | (23) % | (24) % | (8) % | (18) % | |||||||
Statistics by State | |||||||||||
Average number of customers (in thousands) | 929 | 924 | 931 | 924 | |||||||
Actual degree days | 1,002 | 985 | 3,082 | 2,783 | |||||||
Normal degree days | 1,320 | 1,320 | 3,356 | 3,359 | |||||||
Percent colder (warmer) than normal weather | (24) % | (25) % | (8) % | (17) % | |||||||
Average number of customers (in thousands) | 651 | 648 | 653 | 651 | |||||||
Actual degree days | 1,520 | 1,433 | 4,463 | 3,863 | |||||||
Normal degree days | 1,807 | 1,791 | 4,728 | 4,690 | |||||||
Percent colder (warmer) than normal weather | (16) % | (20) % | (6) % | (18) % | |||||||
Average number of customers (in thousands) | 710 | 706 | 711 | 706 | |||||||
Actual degree days | 399 | 446 | 1,450 | 1,345 | |||||||
Normal degree days | 650 | 673 | 1,646 | 1,679 | |||||||
Percent colder (warmer) than normal weather | (39) % | (34) % | (12) % | (20) % | |||||||
Analyst Contact: | Erin Dailey |
918-947-7441 | |
Media Contact: | Leah Harper |
918-947-7123 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/one-gas-announces-fourth-quarter-and-full-year-2025-financial-results-releases-non-gaap-adjusted-financial-guidance-302691813.html
SOURCE ONE Gas, Inc.
FAQ
What were ONE Gas (OGS) Q4 2025 and full-year 2025 EPS figures?
What adjusted earnings guidance did ONE Gas (OGS) give for 2026?
How much capital investment did ONE Gas (OGS) plan for 2026 and what is the focus?
Did ONE Gas (OGS) change its dividend for Q1 2026 and when is it payable?
What drove ONE Gas operating income improvement in 2025 versus 2024?
How did weather and interest costs affect ONE Gas (OGS) Q4 2025 results?
