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ONE Gas (NYSE: OGS) boosts 2026 outlook as Q2 earnings climb

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

ONE Gas, Inc. reported significantly stronger results for the quarter and six months ended June 30, 2026 and raised its 2026 adjusted earnings expectations to the upper half of its prior guidance ranges of $306–$314 million of adjusted net income and $4.83–$4.95 adjusted diluted EPS. Second‑quarter 2026 adjusted net income was $52.1 million, or $0.82 per diluted share, versus $32.7 million, or $0.54, a year earlier; GAAP net income was $46.8 million, or $0.74 per diluted share, up from $32.0 million, or $0.53. Year‑to‑date adjusted net income rose to $185.5 million, or $2.94 per diluted share, compared with $152.8 million, or $2.53, in 2025.

Operating income increased to $82.7 million in the quarter, driven mainly by $16.4 million of new rate revenue and customer growth, partly offset by higher employee and service costs. Warmer‑than‑normal weather reduced usage, but the impact was mitigated by weather normalization mechanisms. Excluding KGSS‑I securitized bonds, net interest expense declined by $3.8 million for the quarter and $6.7 million year‑to‑date, aided by lower‑rate commercial paper and Texas House Bill 4384. Capital expenditures and asset removal costs were $188.3 million for the quarter and are expected to total about $800 million in 2026, including roughly $230 million for system extensions. The board declared a quarterly dividend of $0.68 per share ($2.72 annualized), payable August 31, 2026, to shareholders of record on August 17, 2026. Regulatory filings in Kansas, Oklahoma and Texas seek or implement additional rate increases and customer credits tied to infrastructure and performance‑based mechanisms.

Positive

  • Q2 2026 adjusted net income increased to $52.1 million, with diluted adjusted EPS of $0.82 versus $0.54 in Q2 2025, reflecting substantially higher earnings than the prior-year quarter.
  • 2026 adjusted earnings guidance was raised to the upper half of the $306–$314 million adjusted net income range and $4.83–$4.95 adjusted diluted EPS range, indicating improved full‑year expectations.
  • Shareholder returns remain supported by a $0.68 quarterly dividend ($2.72 annualized) alongside an $800 million 2026 capital program focused on system integrity and customer and service extensions.

Negative

  • None.

Filing Explained

At June 30, 2026, common shares outstanding were 62,797,154.

ONE Gas used this Form 8-K to report specified material events and furnished its June 30, 2026 financial statements; the filing’s structural additions are its liquidity position and common-stock issuance.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 8.01 Other Events Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 adjusted net income $52.1 million Quarter ended June 30, 2026; adjusted net income vs $32.7 million in Q2 2025
Q2 2026 net income (GAAP) $46.8 million Quarter ended June 30, 2026; up from $32.0 million in Q2 2025
Q2 2026 diluted EPS (GAAP) $0.74 Diluted earnings per share for the quarter ended June 30, 2026 vs $0.53 in 2025
YTD 2026 net income (GAAP) $175.5 million Six months ended June 30, 2026; compared with $151.5 million in 2025
2026 adjusted net income guidance range $306–$314 million Full-year 2026 adjusted net income guidance; expectations raised to upper half
2026 adjusted diluted EPS guidance range $4.83–$4.95 Full-year 2026 adjusted diluted EPS guidance range
Quarterly dividend per share $0.68 Cash dividend declared for Q3 2026; $2.72 annualized, payable August 31, 2026
2026 capital investments $800 million Expected 2026 capital investments including asset removal costs; about $230 million for extensions
weather normalization mechanisms financial
"The impact on operating income was mitigated by weather normalization mechanisms."
Weather normalization mechanisms are methods companies use to adjust reported sales, costs or performance to remove the effects of abnormal weather so results reflect typical conditions. For investors, this is like comparing seasonal sales after removing an unusually hot summer or cold winter — it makes underlying trends and management performance clearer, helping assess whether changes are due to real business shifts or just weather-driven swings.
Performance-Based Rate Change (PBRC) regulatory
"filed its annual Performance-Based Rate Change (PBRC) application for the test year"
Gas System Reliability Surcharge regulatory
"requesting an increase of approximately $14.3 million related to its Gas System Reliability Surcharge"
securitized utility tariff bonds financial
"issued $336 million of securitized utility tariff bonds."
excess deferred income taxes (EDIT) financial
"regulatory liability associated with excess deferred income taxes (EDIT) of $3.3 million"
Excess deferred income taxes are bookkeeping entries that show taxes a company will likely owe later because accounting rules let it report different profits for financial statements than for tax returns. The “excess” part usually means the future tax obligations recorded exceed any future tax benefits, so investors see a net future cash outflow; like a bill the company has postponed, it signals potential higher cash taxes down the road and can affect valuation and cash flow forecasts.
Q2 2026 net income (GAAP) $46.8 million; diluted EPS $0.74 Up from $32.0 million; diluted EPS $0.53 in Q2 2025
Q2 2026 adjusted net income $52.1 million; adjusted diluted EPS $0.82 Up from $32.7 million; adjusted diluted EPS $0.54 in Q2 2025
YTD 2026 net income (GAAP) $175.5 million; diluted EPS $2.78 Up from $151.5 million; diluted EPS $2.51 for the six months ended June 30, 2025
Guidance

Adjusted 2026 earnings expected in the upper half of prior guidance ranges of $306–$314 million adjusted net income and $4.83–$4.95 adjusted diluted EPS; GAAP net income guidance remains $294–$302 million with diluted EPS of $4.65–$4.77.

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FAQ

What were ONE Gas (OGS) second quarter 2026 earnings?
ONE Gas reported Q2 2026 GAAP net income of $46.8 million, or $0.74 diluted EPS. Adjusted net income was $52.1 million, or $0.82 diluted EPS, compared with $32.0 million ($0.53) GAAP and $32.7 million ($0.54) adjusted a year earlier.

How did ONE Gas (OGS) change its 2026 earnings guidance?
ONE Gas raised 2026 adjusted earnings expectations to the upper half of its prior ranges of $306–$314 million adjusted net income and $4.83–$4.95 adjusted diluted EPS. The GAAP net income guidance range remains $294–$302 million, with diluted EPS of $4.65–$4.77.

What dividend did ONE Gas (OGS) declare for the third quarter of 2026?
The board declared a cash dividend of $0.68 per share, or $2.72 annualized. It is payable on August 31, 2026, to shareholders of record at the close of business on August 17, 2026, continuing the company’s regular cash returns.

How did ONE Gas (OGS) revenue and operating income perform in Q2 2026?
Total revenues were $411.6 million in Q2 2026 versus $423.7 million a year earlier, while operating income rose to $82.7 million from $71.9 million. Higher revenues from new rates and customer growth offset warmer weather and increased employee and service costs.

What are ONE Gas (OGS) capital investment plans for 2026?
For 2026, ONE Gas expects capital investments, including asset removal costs, of approximately $800 million. About $230 million is planned for extensions to new customers, with the balance focused on system integrity, replacement projects and reliability improvements across its service territories.

What key regulatory developments affected ONE Gas (OGS) in 2026?
Kansas Gas Service filed for a $14.3 million Gas System Reliability Surcharge increase effective October 2026. Texas Gas Service received approval for a $36.9 million GRIP revenue increase. Oklahoma Natural Gas requested a $28.7 million base rate hike plus $2.6 million in incentives and $14.4 million of EDIT credits.
0001587732false00015877322026-08-042026-08-04

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Date of report)August 4, 2026
(Date of earliest event reported)August 4, 2026

ONE Gas, Inc.
(Exact name of registrant as specified in its charter)
Oklahoma001-3610846-3561936
(State or other jurisdiction(Commission(IRS Employer
of incorporation)File Number)Identification No.)

15 East Fifth Street; Tulsa, OK
(Address of principal executive offices)

74103
(Zip code)

(918) 947-7000
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.01 per shareOGSNew York Stock Exchange
NYSE Texas

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


The information disclosed in Items 2.02 and 7.01, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as expressly set forth by specific reference in such filing.
Item 2.02Results of Operations and Financial Condition
On August 4, 2026, we announced our results of operations for the quarter ended June 30, 2026. The news release is furnished as Exhibit 99.1 and incorporated by reference herein.
Item 7.01Regulation FD Disclosure
On August 4, 2026, we announced our results of operations for the quarter ended June 30, 2026, raised 2026 financial guidance, and declared a cash dividend of 68 cents per share of common stock. The news release is furnished as Exhibit 99.1 and is incorporated by reference herein.
Item 8.01Other Events
On August 4, 2026, our board of directors declared a cash dividend of 68 cents per share of common stock, payable August 31, 2026, to shareholders of record at the close of business on August 17, 2026.
Item 9.01Financial Statements and Exhibits
(d)Exhibits
Exhibit
Number		Description
99.1
News release issued by ONE Gas, Inc. dated August 4, 2026.
104Cover Page Interactive Data File (embedded within the Inline XBRL document).

2

SIGNATURE

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

ONE Gas, Inc.
Date:August 4, 2026By:/s/ Christopher P. Sighinolfi
Christopher P. Sighinolfi
Senior Vice President and
Chief Financial Officer

3

Exhibit 99.1

logoletterheadb27a.jpg

August 4, 2026Analyst Contact:Erin Dailey
918-947-7441
Media Contact:Leah Harper
918-947-7123

ONE Gas Announces Second Quarter 2026 Financial Results; Raises 2026 Adjusted Earnings Expectations to Upper Half of Financial Guidance Ranges

Declares Third Quarter Dividend

Analyst call and webcast scheduled tomorrow, Aug. 5 at 11 a.m. EDT

TULSA, Okla. - Aug. 4, 2026 - ONE Gas, Inc. (NYSE: OGS) today announced its second quarter financial results and raised its 2026 adjusted earnings expectations to the upper half of the previously announced financial guidance ranges. The Company also declared its quarterly dividend.

"Our strong second quarter and first-half results reflect the continued execution of our growth strategy and the benefits of operating in constructive jurisdictions. This performance gives us the confidence to raise our adjusted earnings expectations for the full year," said Robert S. McAnnally, chief executive officer. "We delivered these results while maintaining our focus on reliability and affordability for customers and creating long-term value for shareholders."

FINANCIAL RESULTS & HIGHLIGHTS

•The Company raised its 2026 adjusted net income and earnings per diluted share expectations to the upper half of the respective $306 million to $314 million and $4.83 to $4.95 ranges;
•Second quarter 2026 adjusted net income was $52.1 million, or $0.82 per diluted share, compared with $32.7 million, or $0.54 per diluted share, in the same period last year;
•Year-to-date 2026 adjusted net income was $185.5 million, or $2.94 per diluted share, compared with $152.8 million, or $2.53 per diluted share, in 2025;
•Second quarter 2026 net income was $46.8 million, or $0.74 per diluted share, compared with $32.0 million, or $0.53 per diluted share, in the same period last year;
•Year-to-date 2026 net income was $175.5 million, or $2.78 per diluted share, compared with $151.5 million, or $2.51 per diluted share, in 2025; and
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ONE Gas Announces Second Quarter and Year-to-Date 2026 Financial Results;
August 4, 2026
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•The board of directors declared a quarterly dividend of $0.68 per share ($2.72 annualized), payable on August 31, 2026, to shareholders of record at the close of business on August 17, 2026.

SECOND QUARTER 2026 FINANCIAL PERFORMANCE

ONE Gas reported operating income of $82.7 million in the second quarter, compared with $71.9 million in the second quarter 2025, which primarily reflects:

•an increase of $16.4 million in revenue from new rates;
•an increase of $1.4 million in residential sales due primarily to net customer growth in Oklahoma and Texas; and
•an increase of $1.3 million in line extension revenue in Oklahoma.

These increases were partially offset by:

•an increase of $7.4 million in employee-related costs;
•an increase of $1.1 million in outside services; and
•an increase of $1.1 million in fleet expense.

Weather was 42 percent warmer than normal and 28 percent warmer than the prior year for the three months ended June 30, 2026. The impact on operating income was mitigated by weather normalization mechanisms.

Excluding interest related to KGSS-I securitized bonds, net interest expense decreased $3.8 million for the three months ending June 30, 2026. The decrease in interest expense is due primarily to commercial paper borrowings at lower rates and the implementation of Texas House Bill 4384.

Income tax expense includes a credit for amortization of the regulatory liability associated with excess deferred income taxes (EDIT) of $3.3 million and $2.1 million for the three months ended June 30, 2026, and 2025, respectively.

Capital expenditures and asset removal costs were $188.3 million for the second quarter 2026 compared with $190.1 million in the same period last year, primarily representing expenditures for system integrity and extension of service to new areas.

YEAR-TO-DATE 2026 FINANCIAL PERFORMANCE

Operating income for the six months ended June 30, 2026, was $272.3 million, compared with $252.4 million in 2025, which primarily reflects:

•an increase of $43.7 million from new rates;
•an increase of $3.2 million in residential sales due primarily to net customer growth in Oklahoma and Texas; and
•an increase of $1.8 million from released transportation capacity to other shippers in Kansas.

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ONE Gas Announces Second Quarter and Year-to-Date 2026 Financial Results;
August 4, 2026
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These increases were partially offset by:

•an increase of $13.2 million in employee-related costs;
•an increase of $3.4 million in outside services;
•an increase of $1.3 million in fleet expense; and
•a decrease of $10.6 million in revenue due to lower sales and transport volumes, net of the impact of weather normalization mechanisms.

Weather was 23 percent warmer than normal and 25 percent warmer than the prior year for the six months ended June 30, 2026. The impact on operating income was mitigated by weather normalization mechanisms.

Excluding interest related to KGSS-I securitized bonds, net interest expense decreased $6.7 million for the six months ended June 30, 2026. The decrease in interest expense is due primarily to commercial paper borrowings at lower rates and the implementation of Texas House Bill 4384.

Income tax expense includes a credit for amortization of the regulatory liability associated with EDIT of $12.8 million and $10.2 million for the six months ended June 30, 2026, and 2025, respectively.

Capital expenditures and asset removal costs were $357.9 million for the six-month 2026 period compared with $367.8 million in the same period last year, primarily representing expenditures for system integrity and extension of service to new areas.

REGULATORY ACTIVITIES UPDATE

In July 2026, Kansas Gas Service submitted an application to the Kansas Corporation Commission requesting an increase of approximately $14.3 million related to its Gas System Reliability Surcharge to be effective October 2026. The filing includes expanded infrastructure investments as defined by Kansas House Bill 2435.

In March 2026, Texas Gas Service made a Gas Reliability Infrastructure Program filing for all customers requesting a $36.9 million revenue increase to be effective in July 2026. In June 2026, the Texas Railroad Commission approved an increase of $36.9 million, and new rates became effective in July 2026.

In February 2026, Oklahoma Natural Gas filed its annual Performance-Based Rate Change (PBRC) application for the test year ended December 2025. The filing includes a requested $28.7 million base rate revenue increase, $2.6 million energy efficiency incentive and $14.4 million of estimated EDIT to be credited to customers in 2027. At the hearing on June 11, 2026, the administrative law judge recommended approval of the application as filed. Subsequent to the hearing, exceptions to the administrative law judge’s oral ruling were filed at the Oklahoma Corporation Commission as well as an appeal to the Oklahoma Supreme Court. Interim rates subject to refund were implemented on June 26, 2026, in compliance with the PBRC tariff.

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ONE Gas Announces Second Quarter and Year-to-Date 2026 Financial Results;
August 4, 2026
Page 4
2026 FINANCIAL GUIDANCE

Based on strong performance during the first half of 2026 and anticipated benefits associated with Texas House Bill 4384, the Company has raised its 2026 adjusted earnings expectations to the upper half of its previously issued 2026 financial guidance ranges, which called for adjusted net income of $306 million to $314 million and adjusted net income per diluted share of $4.83 to $4.95.

Capital investments, including asset removal costs, are expected to be approximately $800 million in 2026, primarily targeted for system integrity and replacement projects. Capital investments for extensions to new customers are expected to be approximately $230 million of the $800 million.

EARNINGS CONFERENCE CALL AND WEBCAST

The ONE Gas executive management team will host a conference call on Wednesday, August 5, 2026, at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time). The call also will be carried live on the ONE Gas website.

To participate in the telephone conference call, dial 800-715-9871, passcode 3280987, 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 1-800-770-2030, passcode 3280987.

NON-GAAP DISCLOSURE STATEMENT

This news 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 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.  

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ONE Gas Announces Second Quarter and Year-to-Date 2026 Financial Results;
August 4, 2026
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ONE Gas, Inc. (NYSE: OGS) is a 100% regulated natural gas utility, and trades on the New York Stock Exchange and the NYSE Texas under the symbol “OGS.” ONE Gas is included in the S&P MidCap 400 Index and is one of the largest natural gas utilities in the United States.

Headquartered in Tulsa, Oklahoma, ONE Gas provides a reliable and affordable energy choice to more than 2.3 million customers in Kansas, Oklahoma and Texas. Its divisions include Kansas Gas Service, the largest natural gas distributor in Kansas; Oklahoma Natural Gas, the largest in Oklahoma; and Texas Gas Service, the third largest in Texas, in terms of customers.

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 and Texas;
•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;
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ONE Gas Announces Second Quarter and Year-to-Date 2026 Financial Results;
August 4, 2026
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•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 and Texas, 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.
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ONE Gas Announces Second Quarter and Year-to-Date 2026 Financial Results;
August 4, 2026
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APPENDIX

ONE Gas, Inc.
CONSOLIDATED STATEMENTS OF INCOME
Three Months EndedSix Months Ended
June 30,June 30,
(Unaudited)2026202520262025
(Thousands of dollars, except per share amounts)
Total revenues$411,639 $423,741 $1,243,350 $1,358,931 
Cost of natural gas90,287 117,942 483,863 630,404 
Operating expenses
Operations and maintenance139,628 130,987 286,575 266,282 
Depreciation and amortization76,240 79,314 153,025 161,018 
General taxes22,813 23,643 47,624 48,873 
Total operating expenses238,681 233,944 487,224 476,173 
Operating income82,671 71,855 272,263 252,354 
Other income (expense), net5,220 2,572 3,123 3,090 
Interest expense, net(31,101)(35,279)(63,459)(70,976)
Income before income taxes56,790 39,148 211,927 184,468 
Income taxes(9,982)(7,115)(36,446)(33,016)
Net income$46,808 $32,033 $175,481 $151,452 
Earnings per share
Basic$0.74 $0.53 $2.79 $2.52 
Diluted$0.74 $0.53 $2.78 $2.51 
Average shares (thousands)
Basic62,959 60,113 62,936 60,095 
Diluted63,153 60,455 63,178 60,361 
Dividends declared per share of stock$0.68 $0.67 $1.36 $1.34 

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ONE Gas Announces Second Quarter and Year-to-Date 2026 Financial Results;
August 4, 2026
Page 8
APPENDIX

ONE Gas, Inc.
CONSOLIDATED BALANCE SHEETS
June 30,December 31,
(Unaudited)20262025
Assets(Thousands of dollars)
Property, plant and equipment
Property, plant and equipment$9,998,502 $9,734,150 
Accumulated depreciation and amortization2,678,316 2,611,952 
Net property, plant and equipment7,320,186 7,122,198 
Current assets
Cash and cash equivalents7,858 10,620 
Restricted cash and cash equivalents22,711 23,107 
Total cash, cash equivalents and restricted cash and cash equivalents30,569 33,727 
Accounts receivable, net250,861 461,631 
Materials and supplies96,672 97,595 
Income tax receivable— 55,552 
Natural gas in storage158,219 176,451 
Regulatory assets83,367 49,504 
Prepaid expenses33,823 34,224 
Other current assets8,326 7,200 
Total current assets661,837 915,884 
Goodwill and other assets
Regulatory assets250,704 256,225 
Securitized intangible asset, net218,991 233,786 
Goodwill157,953 157,953 
Pension and other postemployment benefits47,326 47,012 
Other assets155,206 120,026 
Total goodwill and other assets830,180 815,002 
Total assets$8,812,203 $8,853,084 





















APPENDIX
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ONE Gas Announces Second Quarter and Year-to-Date 2026 Financial Results;
August 4, 2026
Page 9

ONE Gas, Inc.
CONSOLIDATED BALANCE SHEETS
(Continued)
June 30,December 31,
(Unaudited)20262025
Equity and Liabilities(Thousands of dollars)
Equity and long-term debt
Common stock, $0.01 par value: authorized 250,000,000 shares; issued and outstanding 62,797,154 shares at June 30, 2026; issued and outstanding 62,692,392 shares at December 31, 2025$629 $627 
Paid-in capital2,539,068 2,530,137 
Retained earnings998,454 909,355 
Accumulated other comprehensive income (loss)(265)4 
Total equity3,537,886 3,440,123 
Other long-term debt, excluding current maturities, net of issuance costs2,133,688 2,133,018 
Securitized utility tariff bonds, excluding current maturities, net of issuance costs207,115 223,020 
Total long-term debt, excluding current maturities, net of issuance costs2,340,803 2,356,038 
Total equity and long-term debt5,878,689 5,796,161 
Current liabilities
Current maturities of other long-term debt, net of issuance costs249,918 249,674 
Current maturities of securitized utility tariff bonds, net of issuance costs31,404 30,566 
Notes payable770,800 737,400 
Accounts payable110,952 222,102 
Accrued taxes other than income57,395 75,568 
Regulatory liabilities24,702 57,277 
Customer deposits53,373 52,871 
Other current liabilities77,911 106,400 
Total current liabilities1,376,455 1,531,858 
Deferred credits and other liabilities
Deferred income taxes1,012,944 963,874 
Regulatory liabilities433,135 451,620 
Other deferred credits110,980 109,571 
Total deferred credits and other liabilities1,557,059 1,525,065 
Commitments and contingencies
Total liabilities and equity$8,812,203 $8,853,084 
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ONE Gas Announces Second Quarter and Year-to-Date 2026 Financial Results;
August 4, 2026
Page 10
APPENDIX

ONE Gas, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended
June 30,
(Unaudited)20262025
(Thousands of dollars)
Operating activities
Net income$175,481 $151,452 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization153,025 161,018 
Deferred income taxes32,478 23,684 
Share-based compensation expense8,174 7,524 
Provision for doubtful accounts5,026 4,085 
Changes in assets and liabilities:
Accounts receivable205,744 141,290 
Materials and supplies923 (3,886)
Income tax receivable55,552 — 
Natural gas in storage18,232 26,736 
Asset removal costs(27,861)(20,718)
Accounts payable(108,977)(121,593)
Accrued taxes other than income(18,173)(16,159)
Customer deposits502 (2,235)
Regulatory assets and liabilities - current(74,156)78,329 
Regulatory assets and liabilities - noncurrent3,691 21,198 
Other assets and liabilities - current(28,437)(12,271)
Other assets and liabilities - noncurrent(13,893)10,355 
Cash provided by operating activities387,331 448,809 
Investing activities
Capital expenditures(330,035)(347,065)
Other investing expenditures(6,691)(4,075)
Other investing receipts6,982 2,629 
Cash used in investing activities(329,744)(348,511)
Financing activities
Borrowings (repayments) of notes payable, net33,400 (42,200)
Issuance of common stock3,894 3,561 
Repayment of other long-term debt(7)(8)
Repayment of securitized utility tariff bonds(15,356)(14,547)
Dividends paid(85,356)(80,306)
Tax withholdings related to net share settlements of stock compensation(4,161)(2,614)
Construction advances6,841 — 
Cash used in financing activities(60,745)(136,114)
Change in cash, cash equivalents, restricted cash and restricted cash equivalents(3,158)(35,816)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period33,727 78,537 
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period$30,569 $42,721 
Supplemental cash flow information:
Cash paid for interest, net of amounts capitalized$62,407 $69,972 
Cash paid (received) for state income taxes$1,150 $715 
Cash paid (received) for federal income taxes$(50,302)$7,013 

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ONE Gas Announces Second Quarter and Year-to-Date 2026 Financial Results;
August 4, 2026
Page 11
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 EndedSix Months Ended
June 30,June 30,
2026202520262025
(Thousands of dollars, except per share amounts)
Net income - GAAP$46,808$32,033$175,481 $151,452
Other income - deferred carrying cost (a)
5,2576539,9821,301
Income taxes (b)
————
Adjusted net income - non-GAAP$52,065 $32,686 $185,463 $152,753 
Earnings per share - GAAP
Basic$0.74$0.53$2.79$2.52
Diluted$0.74$0.53$2.78$2.51
Adjusted net income per share - non-GAAP
Basic$0.83$0.54$2.95$2.54
Diluted$0.82$0.54$2.94$2.53
Average shares (thousands)
Basic62,95960,11362,93660,095
Diluted63,15360,45563,17860,361
(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 Texas rates, as authorized by our regulators or state law. Property, plant and equipment placed in service may vary by quarter based on the timing and complexity of projects, weather impacts, construction completion schedules, contractor activities, and other operational factors. During the three months ended June 30, 2026, we placed $53.8 million of property, plant and equipment in service eligible for this treatment, compared with $62.6 million in the same period last year. For the six months ended June 30, 2026, we placed $125.3 million of property, plant and equipment in service eligible for this treatment, compared with $125.5 million in the same period last year.
(b) This deferred carrying cost increases book income but is non-taxable, creating a permanent tax difference.

ONE Gas, Inc.
2026 Financial Guidance: Reconciliation of non-GAAP to GAAP:
LowMidHigh
(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(b)
— — — 
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)
Basic62,99562,99562,995
Diluted63,35063,35063,350
(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 Texas rates, as authorized by our regulators or state law. Property, plant and equipment placed in service may vary by quarter based on the timing and complexity of projects, weather impacts, construction completion schedules, contractor activities, and other operational factors.
(b) This deferred carrying cost increases book income but is non-taxable, creating a permanent tax difference.
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ONE Gas Announces Second Quarter and Year-to-Date 2026 Financial Results;
August 4, 2026
Page 12
APPENDIX

ONE Gas, Inc.
KGSS-I SECURITIZATION

In November 2022, Kansas Gas Service Securitization I, L.L.C. (KGSS-I) issued $336 million of securitized utility tariff bonds. KGSS-I used the proceeds from the issuance to purchase the Securitized Utility Tariff Property from Kansas Gas Service, pay for debt issuance costs, and reimburse Kansas Gas Service for upfront securitization costs paid on behalf of KGSS-I.

Revenues for the three months ended June 30, 2026, include $10.9 million associated with KGSS-I, which is offset by $7.5 million in operating and amortization expense and $3.4 million in interest expense, net. Compared to the same three month period last year, revenues decreased $2.3 million, interest expense, net, decreased $0.4 million, and operating and amortization expense decreased $1.9 million.

Revenues for the six months ended June 30, 2026, include $21.9 million associated with KGSS-I, which is offset by $15.0 million in operating and amortization expense and $6.8 million in interest expense, net. Compared to the same twelve month period last year, revenues decreased $3.0 million, interest expense, net, decreased $0.8 million, and amortization and operating expense decreased $2.2 million.

The following table summarizes the impact of KGSS-I on the consolidated balance sheets, for the periods indicated:

June 30,December 31,
20262025
(Thousands of dollars)
Restricted cash and cash equivalents$22,711 $23,107 
Accounts receivable4,317 4,463 
Securitized intangible asset, net218,991 233,786 
Total assets$246,019 $261,356 
Current maturities of securitized utility tariff bonds, net of issuance costs$31,404 $30,566 
Accounts payable217 136 
Accrued interest5,543 5,894 
Securitized utility tariff bonds, excluding current maturities, net of discounts and issuance costs $4.0 million and $4.3 million, as of June 30, 2026, and June 30, 2025, respectively207,115 223,020 
Paid-in capital1,680 1,680 
Retained earnings60 60 
Total liabilities and equity$246,019 $261,356 
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ONE Gas Announces Second Quarter and Year-to-Date 2026 Financial Results;
August 4, 2026
Page 13
The following table summarizes the impact of KGSS-I on the consolidated statements of income, for the periods indicated:

Three Months EndedSix Months Ended
June 30,June 30,
2026202520262025
(Thousands of dollars)
Operating revenues$10,876 $13,205 $21,853 $24,842 
Operating expense(110)(111)(221)(221)
Amortization expense(7,368)(9,292)(14,795)(16,986)
Interest income109 112 246 260 
Interest expense(3,471)(3,879)(7,011)(7,823)
Income before income taxes36 35 72 72 
Income taxes— (6)— — 
Net income$36 $29 $72 $72 


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ONE Gas Announces Second Quarter and Year-to-Date 2026 Financial Results;
August 4, 2026
Page 14
APPENDIX
ONE Gas, Inc.
INFORMATION AT A GLANCE
Three Months EndedSix Months Ended
June 30,June 30,
(Unaudited)2026202520262025
(Millions of dollars)
Natural gas sales $357.8$369.5$1,127.7$1,239.9
Transportation revenues31.831.071.974.8
Securitization customer charges10.913.221.924.8
Other revenues11.110.021.819.5
Total revenues$411.6$423.7$1,243.3$1,359.0
Cost of natural gas90.4117.9483.9630.4
Operating costs 162.4154.6334.2315.2
Depreciation and amortization76.279.3153.0161.0
Operating income $82.6$71.9$272.2$252.4
Net income$46.8$32.0$175.5$151.5
Capital expenditures and asset removal costs$188.3$190.1$357.9$367.8
Volumes (Bcf)
Natural gas sales
Residential10.412.654.471.5
Commercial and industrial5.05.820.025.0
Other0.50.51.41.7
Total sales volumes delivered15.918.975.898.2
Transportation50.748.7109.8114.0
Total volumes delivered66.667.6185.6212.2
Average number of customers (in thousands)
Residential2,1332,1242,1352,125
Commercial and industrial161164162164
Other3333
Transportation11111111
Total customers2,3082,3022,3112,303
Heating Degree Days
Actual degree days3925474,5516,060
Normal degree days6786735,9105,904
Percent colder (warmer) than normal weather(42)%(19)%(23)%3 %
Statistics by State
Oklahoma
Average number of customers (in thousands)
936933937934
Actual degree days1261641,5372,080
Normal degree days2302302,0282,027
Percent colder (warmer) than normal weather(45)%(29)%(24)%3 %
Kansas
Average number of customers (in thousands)
655656657657
Actual degree days2343192,3042,929
Normal degree days3973972,8832,883
Percent colder (warmer) than normal weather(41)%(20)%(20)%2 %
Texas
Average number of customers (in thousands)
717713717712
Actual degree days32647101,051
Normal degree days5146999994
Percent colder (warmer) than normal weather(37)%39 %(29)%6 %
###

Source: View Original Filing on SEC EDGAR

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