On August 5, 2024, ONE Gas Inc (OGS, Financial) released its 8-K filing detailing its second quarter financial results. ONE Gas Inc is a regulated natural gas utility company involved in the distribution and sale of natural gas to residential, commercial, industrial, and transportation consumers in Oklahoma, Kansas, and Texas.
Performance Overview
ONE Gas Inc (OGS, Financial) reported a net income of $27.3 million, or $0.48 per diluted share, for Q2 2024, compared to $32.7 million, or $0.58 per diluted share, in Q2 2023. This result exceeded the analyst estimate of $0.39 per share. However, the company's revenue for the quarter was $354.1 million, falling short of the estimated $391.01 million.
Key Financial Achievements
Despite the decline in net income, ONE Gas Inc (OGS, Financial) achieved several financial milestones:
- Operating income increased to $69.4 million from $64.0 million in Q2 2023, driven by a $14.7 million increase in revenue from new rates and a $1.6 million increase in residential sales due to customer growth in Oklahoma and Texas.
- Year-to-date net income was $126.6 million, or $2.23 per diluted share, compared to $135.3 million, or $2.42 per diluted share, in the same period last year.
- Capital expenditures and asset removal costs were $194.6 million for Q2 2024, up from $190.2 million in Q2 2023, primarily for system integrity and service extension.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenues | $354.1 million | $398.1 million |
| Operating Income | $69.4 million | $64.0 million |
| Net Income | $27.3 million | $32.7 million |
| Earnings Per Share (Diluted) | $0.48 | $0.58 |
Balance Sheet and Cash Flow
ONE Gas Inc (OGS, Financial) reported total assets of $7.83 billion as of June 30, 2024, compared to $7.77 billion at the end of 2023. The company's equity and long-term debt stood at $4.97 billion, up from $4.93 billion at the end of 2023. Cash provided by operating activities was $250.9 million for the first six months of 2024, compared to $748.7 million in the same period last year.
Regulatory Activities
ONE Gas Inc (OGS, Financial) made significant progress in its regulatory activities:
- A unanimous settlement agreement was signed for the Kansas Gas Service rate case, pending approval by the Kansas Corporation Commission (KCC).
- New rates for Oklahoma Natural Gas went into effect on June 28, 2024, subject to refund until the Oklahoma Corporation Commission issues an order.
- Texas Gas Service implemented new rates in July 2024, subject to adjustment depending on the outcome of an appeal.
Financial Guidance
ONE Gas Inc (OGS, Financial) reaffirmed its 2024 financial guidance, expecting net income to be in the range of $214 million to $231 million, or $3.70 to $4.00 per diluted share. Capital expenditures, including asset removal costs, are projected to be approximately $750 million for the year.
Conclusion
ONE Gas Inc (OGS, Financial) demonstrated resilience in Q2 2024, with earnings per share surpassing analyst estimates despite a decline in revenue. The company's strategic initiatives and regulatory progress position it well for the remainder of the year. For more detailed insights, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from ONE Gas Inc for further details.
