Q3 2024 ONE Gas Inc Earnings Call Transcript
Key Points
- ONE Gas Inc (OGS) delivered quarterly results in line with expectations, benefiting from company-wide efforts and constructive regulatory outcomes.
- The company raised and narrowed its EPS guidance for 2024 to a range of $3.85 to $3.95, reflecting a 5-cent increase at the midpoint.
- Successful regulatory settlements in Kansas and Texas allow ONE Gas Inc (OGS) to recoup investments and earn a fair rate of return.
- The company benefited from a favorable interest rate environment, particularly from the Fed's 50 basis point rate cut in September.
- Operational efficiencies and cost management initiatives have led to a moderation in O&M expenses, with a year-to-date increase of just 5%.
- Net income for the third quarter decreased to $19.3 million or 34 cents per diluted share, compared to $25.2 million or 45 cents in the same period last year.
- Interest expenses increased by $11.5 million, primarily due to refinancing impacts experienced in the first quarter.
- Operations and maintenance expenses were higher compared to the previous year, mainly due to increased labor-related costs.
- The company faces ongoing concerns about the US election, US deficit, and treasury market dynamics, which have caused longer-term rates to rise.
- Customer growth is affected by higher mortgage rates, impacting home buyers and builders, leading to slower activity in new meter installations.
Good day and welcome to the One gas third quarter earnings conference call and webcast. Today's conference is being recorded at this time. I would like to turn the conference over to Erin Dailey. Please go ahead, Miss Dailey.
Thank you Elliot. Good morning, everyone and thank you for joining us on our third quarter, 2024 earnings conference call.
This call is being webcast live and a replay will be available later today after our prepared remarks, we're happy to take your questions, statements made during this call that might include one gas expectations or predictions should be considered forward-looking statements and are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 the Securities Act of 1933 and the Securities and Exchange Act of 1934 each. As amended, actual results could differ materially from those projected in any forward-looking statements for a discussion of factors that could cause actual results to differ. Please refer to our sec filings.
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