BTIG Research Initiates Coverage on ONE Gas with Buy Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Coverage Initiation: BTIG Research has initiated coverage on ONE Gas with a Buy rating and a $93 price target, anticipating that growing demand from large load customers for natural gas will create a unique growth opportunity while maintaining defensiveness through traditional infrastructure investments.
- Earnings Growth Potential: Analyst Alex Kania views ONE Gas's long-term earnings per share growth rate of 5%-7% as comparable to other electric utilities and gas local distribution companies, and sees value in the stock's current discount valuation given its execution track record and solid regulatory jurisdictions.
- Strong Historical Performance: ONE Gas has delivered a 7% EPS growth over the past decade and has a history of meeting or exceeding guidance, leading Kania to believe that the company is well-positioned to continue its growth trajectory through large load projects and conservative outlook projections.
- Market Opportunity Analysis: The increasing demand from large load customers for speedy baseload and backup power generation presents significant market opportunities for ONE Gas, which, combined with its strong regulatory environment and strategic location, is expected to further drive long-term growth for the company.
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Analyst Views on OGS
Wall Street analysts forecast OGS stock price to rise
6 Analyst Rating
3 Buy
3 Hold
0 Sell
Moderate Buy
Current: 76.090
Low
72.00
Averages
87.33
High
99.00
Current: 76.090
Low
72.00
Averages
87.33
High
99.00
About OGS
ONE Gas, Inc. is a regulated natural gas distribution utility in the United States. The Company operates through a single segment: regulated public utilities, which deliver natural gas to residential, commercial and transportation customers. The Company provides natural gas distribution services to approximately 2.3 million customers. The Company has three divisions: Oklahoma Natural Gas, Kansas Gas Service and Texas Gas Service. It primarily serves residential, commercial and transportation customers in all three states. The Company’s natural gas distribution markets in terms of customers are Oklahoma City and Tulsa, Oklahoma; Kansas City, Wichita and Topeka, Kansas; and Austin and El Paso, Texas. It distributes natural gas to approximately 89%, 71% and 13% of the natural gas distribution customers in Oklahoma, Kansas and Texas, respectively.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BTIG Research Initiates Coverage on ONE Gas with Buy Rating
- Coverage Initiation: BTIG Research has initiated coverage on ONE Gas with a Buy rating and a $93 price target, anticipating that growing demand from large load customers for natural gas will create a unique growth opportunity while maintaining defensiveness through traditional infrastructure investments.
- Earnings Growth Potential: Analyst Alex Kania views ONE Gas's long-term earnings per share growth rate of 5%-7% as comparable to other electric utilities and gas local distribution companies, and sees value in the stock's current discount valuation given its execution track record and solid regulatory jurisdictions.
- Strong Historical Performance: ONE Gas has delivered a 7% EPS growth over the past decade and has a history of meeting or exceeding guidance, leading Kania to believe that the company is well-positioned to continue its growth trajectory through large load projects and conservative outlook projections.
- Market Opportunity Analysis: The increasing demand from large load customers for speedy baseload and backup power generation presents significant market opportunities for ONE Gas, which, combined with its strong regulatory environment and strategic location, is expected to further drive long-term growth for the company.
See More
Latest Ratings and Outlook from Wall Street
- Optimistic Outlook for SpaceX: Wolfe initiates SpaceX with an outperform rating, highlighting its ability to bring launch costs near zero, creating a competitive moat that could significantly enhance the company's valuation.
- Broadcom Maintains Buy Rating: UBS reiterates its buy rating on Broadcom despite concerns regarding its partnership with Google, suggesting that recent roadmap changes and supply challenges may impact future earnings.
- Williams-Sonoma Upgraded to Buy: Bank of America upgrades Williams-Sonoma from neutral to buy, citing its strong performance in the consumer discretionary sector and expectations of continued market share gains.
- Positive Outlook for Avalo Therapeutics: Bank of America expresses bullish sentiment on Avalo Therapeutics' skin disease treatment, initiating coverage with a buy rating and a $35 price target based on positive clinical trial results.
See More
ONE Gas to Participate in Bank of America Energy Conference
- Conference Participation: ONE Gas will participate in the Bank of America Power, Utilities, and Cleantech Conference on May 27, 2026, in New York City, where President and COO Curtis Dinan and CFO Christopher Sighinolfi will hold a series of meetings with investment community members to enhance engagement and communication with investors.
- Investor Materials: Materials used during the conference will be made available on the ONE Gas official website, ensuring that investors can access the latest information and understand the company's strategic direction, thereby enhancing transparency and investor confidence.
- Company Overview: ONE Gas is a 100% regulated natural gas utility serving over 2.3 million customers across Kansas, Oklahoma, and Texas, highlighting its significant position in the U.S. natural gas market.
- Market Position: As part of the S&P MidCap 400 Index, ONE Gas is one of the largest natural gas utilities in the U.S., with its subsidiaries Kansas Gas Service, Oklahoma Natural Gas, and Texas Gas Service leading in their respective states, further solidifying the company's competitive edge.
See More
ONE Gas to Participate in American Gas Association Financial Forum
- Forum Participation: ONE Gas will participate in the American Gas Association Financial Forum from May 17-19, 2026, in Scottsdale, Arizona, where CEO Robert S. McAnnally and the executive team will engage in a series of meetings with the investment community to enhance interaction and transparency with investors.
- Company Overview: ONE Gas is a 100% regulated natural gas utility trading under the symbol OGS and included in the S&P MidCap 400 Index, providing services to over 2.3 million customers across Kansas, Oklahoma, and Texas, highlighting its significant role in the U.S. natural gas sector.
- Market Leadership: Kansas Gas Service, a division of ONE Gas, is the largest natural gas distributor in Kansas, while Oklahoma Natural Gas holds the same position in Oklahoma, and Texas Gas Service ranks third in Texas by customer count, demonstrating its dominant market presence across these states.
- Transparency Initiatives: The company provides access to conference materials on its website, ensuring that investors can obtain the latest information, which further enhances the company's transparency and trust in the capital markets, supporting future capital operations and investor relations management.
See More
ONE Gas Reports Strong Q1 2026 Earnings Amid Warm Winter
- Earnings Growth: ONE Gas reported an adjusted EPS of $2.11 for Q1 2026, reflecting a 6% year-over-year increase despite experiencing one of the warmest winters on record, indicating effective execution of its long-term plans and regulatory strategies.
- Increased Storage Capacity: The company enhanced its storage capacity by 20% since Winter Storm Uri, allowing it to shield customers from price volatility and save $98 million compared to purchasing gas at spot prices, demonstrating its resilience in market fluctuations.
- Capital Project Investments: ONE Gas completed $170 million worth of capital projects this quarter, including the Western Farmers project, which is set to be operational by 2028 and involves constructing a 43-mile 24-inch pipeline in Southern Oklahoma, thereby strengthening its infrastructure.
- Future Outlook: The company reaffirmed its 2026 financial guidance, projecting adjusted net income between $306 million and $314 million and adjusted EPS between $4.83 and $4.95, showcasing confidence in future growth despite uncertainties related to weather impacts and project timing.
See More
ONE Gas Reports Q1 2026 Financial Results and Dividend Declaration
- Financial Performance Boost: ONE Gas reported operating income of $189.6 million in Q1 2026, up 4.9% from $180.5 million in Q1 2025, primarily driven by a $27.3 million increase from new rates, indicating enhanced profitability amid rising customer demand.
- Capital Expenditure Trends: Capital expenditures and asset removal costs totaled $169.6 million in Q1 2026, down from $177.7 million in the same period last year, reflecting the company's ongoing investment strategy in system integrity and service expansion to new areas.
- Dividend Declaration: ONE Gas declared a quarterly dividend of $0.68 per share, an increase from $0.67 in 2025, demonstrating the company's ability to maintain stable financial performance while providing returns to shareholders.
- 2026 Financial Guidance Affirmation: The company affirmed its 2026 net income guidance of $294 million to $302 million and adjusted net income guidance of $306 million to $314 million, showcasing confidence in future growth and the execution of its strategic plan.
See More
BTIG Research Initiates Coverage on ONE Gas with Buy Rating
- Coverage Initiation: BTIG Research has initiated coverage on ONE Gas with a Buy rating and a $93 price target, anticipating that growing demand from large load customers for natural gas will create a unique growth opportunity while maintaining defensiveness through traditional infrastructure investments.
- Earnings Growth Potential: Analyst Alex Kania views ONE Gas's long-term earnings per share growth rate of 5%-7% as comparable to other electric utilities and gas local distribution companies, and sees value in the stock's current discount valuation given its execution track record and solid regulatory jurisdictions.
- Strong Historical Performance: ONE Gas has delivered a 7% EPS growth over the past decade and has a history of meeting or exceeding guidance, leading Kania to believe that the company is well-positioned to continue its growth trajectory through large load projects and conservative outlook projections.
- Market Opportunity Analysis: The increasing demand from large load customers for speedy baseload and backup power generation presents significant market opportunities for ONE Gas, which, combined with its strong regulatory environment and strategic location, is expected to further drive long-term growth for the company.
See More
Latest Ratings and Outlook from Wall Street
- Optimistic Outlook for SpaceX: Wolfe initiates SpaceX with an outperform rating, highlighting its ability to bring launch costs near zero, creating a competitive moat that could significantly enhance the company's valuation.
- Broadcom Maintains Buy Rating: UBS reiterates its buy rating on Broadcom despite concerns regarding its partnership with Google, suggesting that recent roadmap changes and supply challenges may impact future earnings.
- Williams-Sonoma Upgraded to Buy: Bank of America upgrades Williams-Sonoma from neutral to buy, citing its strong performance in the consumer discretionary sector and expectations of continued market share gains.
- Positive Outlook for Avalo Therapeutics: Bank of America expresses bullish sentiment on Avalo Therapeutics' skin disease treatment, initiating coverage with a buy rating and a $35 price target based on positive clinical trial results.
See More
ONE Gas to Participate in Bank of America Energy Conference
- Conference Participation: ONE Gas will participate in the Bank of America Power, Utilities, and Cleantech Conference on May 27, 2026, in New York City, where President and COO Curtis Dinan and CFO Christopher Sighinolfi will hold a series of meetings with investment community members to enhance engagement and communication with investors.
- Investor Materials: Materials used during the conference will be made available on the ONE Gas official website, ensuring that investors can access the latest information and understand the company's strategic direction, thereby enhancing transparency and investor confidence.
- Company Overview: ONE Gas is a 100% regulated natural gas utility serving over 2.3 million customers across Kansas, Oklahoma, and Texas, highlighting its significant position in the U.S. natural gas market.
- Market Position: As part of the S&P MidCap 400 Index, ONE Gas is one of the largest natural gas utilities in the U.S., with its subsidiaries Kansas Gas Service, Oklahoma Natural Gas, and Texas Gas Service leading in their respective states, further solidifying the company's competitive edge.
See More
ONE Gas to Participate in American Gas Association Financial Forum
- Forum Participation: ONE Gas will participate in the American Gas Association Financial Forum from May 17-19, 2026, in Scottsdale, Arizona, where CEO Robert S. McAnnally and the executive team will engage in a series of meetings with the investment community to enhance interaction and transparency with investors.
- Company Overview: ONE Gas is a 100% regulated natural gas utility trading under the symbol OGS and included in the S&P MidCap 400 Index, providing services to over 2.3 million customers across Kansas, Oklahoma, and Texas, highlighting its significant role in the U.S. natural gas sector.
- Market Leadership: Kansas Gas Service, a division of ONE Gas, is the largest natural gas distributor in Kansas, while Oklahoma Natural Gas holds the same position in Oklahoma, and Texas Gas Service ranks third in Texas by customer count, demonstrating its dominant market presence across these states.
- Transparency Initiatives: The company provides access to conference materials on its website, ensuring that investors can obtain the latest information, which further enhances the company's transparency and trust in the capital markets, supporting future capital operations and investor relations management.
See More
ONE Gas Reports Strong Q1 2026 Earnings Amid Warm Winter
- Earnings Growth: ONE Gas reported an adjusted EPS of $2.11 for Q1 2026, reflecting a 6% year-over-year increase despite experiencing one of the warmest winters on record, indicating effective execution of its long-term plans and regulatory strategies.
- Increased Storage Capacity: The company enhanced its storage capacity by 20% since Winter Storm Uri, allowing it to shield customers from price volatility and save $98 million compared to purchasing gas at spot prices, demonstrating its resilience in market fluctuations.
- Capital Project Investments: ONE Gas completed $170 million worth of capital projects this quarter, including the Western Farmers project, which is set to be operational by 2028 and involves constructing a 43-mile 24-inch pipeline in Southern Oklahoma, thereby strengthening its infrastructure.
- Future Outlook: The company reaffirmed its 2026 financial guidance, projecting adjusted net income between $306 million and $314 million and adjusted EPS between $4.83 and $4.95, showcasing confidence in future growth despite uncertainties related to weather impacts and project timing.
See More
ONE Gas Reports Q1 2026 Financial Results and Dividend Declaration
- Financial Performance Boost: ONE Gas reported operating income of $189.6 million in Q1 2026, up 4.9% from $180.5 million in Q1 2025, primarily driven by a $27.3 million increase from new rates, indicating enhanced profitability amid rising customer demand.
- Capital Expenditure Trends: Capital expenditures and asset removal costs totaled $169.6 million in Q1 2026, down from $177.7 million in the same period last year, reflecting the company's ongoing investment strategy in system integrity and service expansion to new areas.
- Dividend Declaration: ONE Gas declared a quarterly dividend of $0.68 per share, an increase from $0.67 in 2025, demonstrating the company's ability to maintain stable financial performance while providing returns to shareholders.
- 2026 Financial Guidance Affirmation: The company affirmed its 2026 net income guidance of $294 million to $302 million and adjusted net income guidance of $306 million to $314 million, showcasing confidence in future growth and the execution of its strategic plan.
See More
