ONE Gas 2025 Q1 Earnings Beats Expectations as Net Income Soars 20%

One Gas (OGS) reported its fiscal 2025 Q1 earnings on May 05th, 2025. ONE Gas Inc's first-quarter earnings surpassed expectations with an EPS of $1.98, exceeding the Zacks Consensus Estimate of $1.85 per share. The company also raised its financial guidance for 2025, aiming for the upper half of its projected net income range of $254 million to $261 million and EPS between $4.20 and $4.32. This performance highlights its effective regulatory strategy and disciplined expense management.

Revenue
The total revenue of One Gas increased by 23.3% to $935.19 million in 2025 Q1, up from $758.32 million in 2024 Q1.

Earnings/Net Income
One Gas's EPS rose 13.7% to $1.99 in 2025 Q1 from $1.75 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $119.42 million in 2025 Q1, marking 20.2% growth from $99.32 million in 2024 Q1. The Company has sustained profitability for 13 years over the corresponding fiscal quarter, reflecting stable business performance. The EPS performance indicates positive growth trends.

Post-Earnings Price Action Review
The impact of earnings report metrics on One Gas's stock price has shown varying degrees of influence over different time frames. Revenue, net income, and EPS all have a positive correlation with stock price, although to different extents. Revenue's effect on short-term stock price movements is moderate, with win rates of 51.83% for 3 days, 50.88% for 10 days, and 47.85% for 30 days. Net income shares similar short-term influence patterns. EPS has a slightly stronger impact, suggesting it is a more potent driver of short-term stock price movements. Overall, while all three metrics positively affect One Gas's stock price, EPS appears to be the most influential, followed by net income and revenue. Investors should consider these metrics alongside broader market conditions and company-specific factors when evaluating stock performance.

CEO Commentary
“We achieved strong financial results in the first quarter due to our effective regulatory strategy and a disciplined approach to managing expenses,” said Robert S. McAnnally, President and Chief Executive Officer. He emphasized that safety remains the top priority while serving customers and addressing the growing demand for natural gas across the service territory. The CEO noted that operating income benefited from new rates and net customer growth, despite challenges such as increased depreciation and employee-related costs.

Guidance
The company expects to achieve the upper half of its 2025 financial guidance, projecting net income between $254 million and $261 million and earnings per diluted share of $4.20 to $4.32. Capital investments, including asset removal costs, are anticipated to be around $750 million, with $180 million targeted for extending services to new customers.

Additional News
ONE Gas Inc recently declared a quarterly dividend of $0.67 per share, set to be paid on June 3, 2025, reflecting confidence in continued financial strength. The company is actively pursuing regulatory rate cases, with Oklahoma Natural Gas requesting a significant $41.5 million base rate increase. Meanwhile, Texas Gas Service has filed for multiple increases totaling $26.8 million across various service areas. These moves highlight ONE Gas's strategic focus on securing rate adjustments to support its financial performance and growth initiatives.