ONE Gas Q4 2025 Earnings Call Insights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 23 hours ago
0mins
Should l Buy OGS?
Source: seekingalpha
- Operational Resilience: During Winter Storm Fern, ONE Gas delivered over 3 billion cubic feet of gas on the peak day without supply disruptions, showcasing the company's strong operational capabilities in extreme weather, which enhances customer trust and market competitiveness.
- Financial Performance: In 2025, net income reached $264 million, or $4.37 per diluted share, reflecting an 18% and 12% increase from 2024, respectively, indicating robust growth driven by ongoing investments and improved operational efficiency, likely attracting further investor interest.
- Non-GAAP Adjustments: The introduction of non-GAAP adjustments to reflect the impact of Texas House Bill 4384 is expected to create a $12 million revenue variance in 2026, providing clearer financial disclosures that enhance transparency and investor confidence.
- Future Outlook: The company anticipates adjusted net income between $306 million and $314 million for 2026, with adjusted earnings per share ranging from $4.83 to $4.95, and long-term growth targets of 7% to 9% for adjusted net income and earnings per share, demonstrating confidence in future growth and strategic planning.
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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: 85.550
Low
72.00
Averages
87.33
High
99.00
Current: 85.550
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.
ONE Gas Reports Increased Q4 Profit
- Profit Growth: ONE Gas Inc. reported a fourth-quarter profit of $86.31 million, translating to $1.42 per share, which marks a significant increase from last year's $77.02 million and $1.34 per share, indicating enhanced profitability.
- Adjusted Earnings: Excluding items, the company reported adjusted earnings of $89.67 million or $1.48 per share, showcasing strong performance in its core operations and ongoing improvements in profitability.
- Revenue Increase: The company's revenue rose by 9.3% to $689.37 million compared to $630.70 million last year, reflecting increased market demand and successful business expansion efforts.
- Market Impact: The growth in earnings and revenue not only boosts investor confidence but also potentially provides funding for future investments and expansions, further solidifying ONE Gas's position in the energy market.
See More
ONE Gas Q4 2025 Earnings Call Insights
- Operational Resilience: During Winter Storm Fern, ONE Gas delivered over 3 billion cubic feet of gas on the peak day without supply disruptions, showcasing the company's strong operational capabilities in extreme weather, which enhances customer trust and market competitiveness.
- Financial Performance: In 2025, net income reached $264 million, or $4.37 per diluted share, reflecting an 18% and 12% increase from 2024, respectively, indicating robust growth driven by ongoing investments and improved operational efficiency, likely attracting further investor interest.
- Non-GAAP Adjustments: The introduction of non-GAAP adjustments to reflect the impact of Texas House Bill 4384 is expected to create a $12 million revenue variance in 2026, providing clearer financial disclosures that enhance transparency and investor confidence.
- Future Outlook: The company anticipates adjusted net income between $306 million and $314 million for 2026, with adjusted earnings per share ranging from $4.83 to $4.95, and long-term growth targets of 7% to 9% for adjusted net income and earnings per share, demonstrating confidence in future growth and strategic planning.
See More
ONE Gas Reports Q4 and Full Year 2025 Financial Performance
- Quarterly Performance Overview: ONE Gas reported a Q4 GAAP EPS of $1.42, meeting expectations, while revenue reached $689.3 million, a 9.3% year-over-year increase, but fell short by $301.14 million, indicating revenue growth challenges.
- Annual Operating Income Growth: For the full year 2025, operating income was $457.5 million, up from $399.0 million in 2024, primarily driven by $116 million from new rates and a $6.6 million increase in residential sales due to customer growth across three states.
- Cost Pressures Evident: Despite revenue growth, the company faced increased costs, with depreciation expenses rising by $20.6 million due to additional capital expenditures, employee-related costs up by $17 million, and ad-valorem taxes increasing by $14.7 million, which pressured overall profitability.
- Customer Refund Impact: ONE Gas also had to refund $2.9 million to Oklahoma customers due to a settlement related to a disputed gas purchase invoice, further affecting the company's financial performance.
See More
ONE Gas Reports 2025 Financial Results and 2026 Outlook
- 2025 Financial Performance: ONE Gas reported diluted earnings per share of $1.42 for Q4 2025 and $4.37 for the full year, reflecting strong operational execution and financial results that are likely to bolster investor confidence.
- Adjusted Net Income: The adjusted net income per diluted share for Q4 2025 was $1.48 and $4.48 for the full year, showcasing the company's effective strategies in mitigating regulatory lag, which is expected to enhance future profitability.
- Capital Expenditure Plans: The company anticipates approximately $800 million in capital investments for 2026, with $230 million earmarked for extending services to new customers, aimed at supporting long-term growth and customer value creation.
- Regulatory Mechanism Impact: The Texas Railroad Commission approved a $14.4 million revenue increase, effective January 2026, which will help the company maintain a stable revenue stream in a competitive market.
See More
ONE Gas Appoints New President and COO
- Executive Appointment: ONE Gas announced that Curtis Dinan will be promoted to President and COO effective March 1, 2026, a move aimed at enhancing the company's operational capabilities in response to growing demand from both traditional customers and new market opportunities.
- Leadership Experience: Dinan has served as the company's Senior Vice President and COO since June 2021, and has previously held roles as Chief Commercial Officer and Chief Financial Officer, with his extensive management background expected to drive the implementation of the company's strategic initiatives in his new role.
- Consistent Strategy: Despite the executive change, ONE Gas's strategy, regulatory commitments, and financial outlook will remain unchanged, indicating the company's ongoing dedication to creating long-term value for shareholders and customers while maintaining stable operations.
- Customer Base: ONE Gas provides reliable natural gas service to over 2.3 million customers across Kansas, Oklahoma, and Texas, and the leadership transition is anticipated to further enhance its service capabilities and customer satisfaction in the market.
See More
ONE Gas to Announce Q4 Earnings on February 18
- Earnings Announcement: ONE Gas is set to release its Q4 earnings on February 18 after market close, with a consensus EPS estimate of $1.43, reflecting a 6.7% year-over-year increase, indicating stable profitability that could positively impact stock prices.
- Strong Revenue Expectations: The anticipated revenue for Q4 is $990.44 million, representing a 57.0% year-over-year growth, which highlights improvements in market demand and operational efficiency, potentially boosting investor confidence.
- Earnings Estimate Revisions: Over the past three months, EPS estimates have seen four upward revisions with no downward adjustments, showcasing analysts' optimistic outlook on the company's future performance, which may further drive stock price increases.
- Dividend Increase: ONE Gas has raised its dividend by 1.5% to $0.68, demonstrating a proactive strategy in cash flow management and shareholder returns, which could attract more long-term investors.
See More
ONE Gas Reports Increased Q4 Profit
- Profit Growth: ONE Gas Inc. reported a fourth-quarter profit of $86.31 million, translating to $1.42 per share, which marks a significant increase from last year's $77.02 million and $1.34 per share, indicating enhanced profitability.
- Adjusted Earnings: Excluding items, the company reported adjusted earnings of $89.67 million or $1.48 per share, showcasing strong performance in its core operations and ongoing improvements in profitability.
- Revenue Increase: The company's revenue rose by 9.3% to $689.37 million compared to $630.70 million last year, reflecting increased market demand and successful business expansion efforts.
- Market Impact: The growth in earnings and revenue not only boosts investor confidence but also potentially provides funding for future investments and expansions, further solidifying ONE Gas's position in the energy market.
See More
ONE Gas Q4 2025 Earnings Call Insights
- Operational Resilience: During Winter Storm Fern, ONE Gas delivered over 3 billion cubic feet of gas on the peak day without supply disruptions, showcasing the company's strong operational capabilities in extreme weather, which enhances customer trust and market competitiveness.
- Financial Performance: In 2025, net income reached $264 million, or $4.37 per diluted share, reflecting an 18% and 12% increase from 2024, respectively, indicating robust growth driven by ongoing investments and improved operational efficiency, likely attracting further investor interest.
- Non-GAAP Adjustments: The introduction of non-GAAP adjustments to reflect the impact of Texas House Bill 4384 is expected to create a $12 million revenue variance in 2026, providing clearer financial disclosures that enhance transparency and investor confidence.
- Future Outlook: The company anticipates adjusted net income between $306 million and $314 million for 2026, with adjusted earnings per share ranging from $4.83 to $4.95, and long-term growth targets of 7% to 9% for adjusted net income and earnings per share, demonstrating confidence in future growth and strategic planning.
See More
ONE Gas Reports Q4 and Full Year 2025 Financial Performance
- Quarterly Performance Overview: ONE Gas reported a Q4 GAAP EPS of $1.42, meeting expectations, while revenue reached $689.3 million, a 9.3% year-over-year increase, but fell short by $301.14 million, indicating revenue growth challenges.
- Annual Operating Income Growth: For the full year 2025, operating income was $457.5 million, up from $399.0 million in 2024, primarily driven by $116 million from new rates and a $6.6 million increase in residential sales due to customer growth across three states.
- Cost Pressures Evident: Despite revenue growth, the company faced increased costs, with depreciation expenses rising by $20.6 million due to additional capital expenditures, employee-related costs up by $17 million, and ad-valorem taxes increasing by $14.7 million, which pressured overall profitability.
- Customer Refund Impact: ONE Gas also had to refund $2.9 million to Oklahoma customers due to a settlement related to a disputed gas purchase invoice, further affecting the company's financial performance.
See More
ONE Gas Reports 2025 Financial Results and 2026 Outlook
- 2025 Financial Performance: ONE Gas reported diluted earnings per share of $1.42 for Q4 2025 and $4.37 for the full year, reflecting strong operational execution and financial results that are likely to bolster investor confidence.
- Adjusted Net Income: The adjusted net income per diluted share for Q4 2025 was $1.48 and $4.48 for the full year, showcasing the company's effective strategies in mitigating regulatory lag, which is expected to enhance future profitability.
- Capital Expenditure Plans: The company anticipates approximately $800 million in capital investments for 2026, with $230 million earmarked for extending services to new customers, aimed at supporting long-term growth and customer value creation.
- Regulatory Mechanism Impact: The Texas Railroad Commission approved a $14.4 million revenue increase, effective January 2026, which will help the company maintain a stable revenue stream in a competitive market.
See More
ONE Gas Appoints New President and COO
- Executive Appointment: ONE Gas announced that Curtis Dinan will be promoted to President and COO effective March 1, 2026, a move aimed at enhancing the company's operational capabilities in response to growing demand from both traditional customers and new market opportunities.
- Leadership Experience: Dinan has served as the company's Senior Vice President and COO since June 2021, and has previously held roles as Chief Commercial Officer and Chief Financial Officer, with his extensive management background expected to drive the implementation of the company's strategic initiatives in his new role.
- Consistent Strategy: Despite the executive change, ONE Gas's strategy, regulatory commitments, and financial outlook will remain unchanged, indicating the company's ongoing dedication to creating long-term value for shareholders and customers while maintaining stable operations.
- Customer Base: ONE Gas provides reliable natural gas service to over 2.3 million customers across Kansas, Oklahoma, and Texas, and the leadership transition is anticipated to further enhance its service capabilities and customer satisfaction in the market.
See More
ONE Gas to Announce Q4 Earnings on February 18
- Earnings Announcement: ONE Gas is set to release its Q4 earnings on February 18 after market close, with a consensus EPS estimate of $1.43, reflecting a 6.7% year-over-year increase, indicating stable profitability that could positively impact stock prices.
- Strong Revenue Expectations: The anticipated revenue for Q4 is $990.44 million, representing a 57.0% year-over-year growth, which highlights improvements in market demand and operational efficiency, potentially boosting investor confidence.
- Earnings Estimate Revisions: Over the past three months, EPS estimates have seen four upward revisions with no downward adjustments, showcasing analysts' optimistic outlook on the company's future performance, which may further drive stock price increases.
- Dividend Increase: ONE Gas has raised its dividend by 1.5% to $0.68, demonstrating a proactive strategy in cash flow management and shareholder returns, which could attract more long-term investors.
See More
