One Gas 2025 Q1 Earnings Strong Performance as Net Income Jumps 20.2%

One Gas (OGS) reported its fiscal 2025 Q1 earnings on May 6th, 2025. The company's performance exceeded expectations, with revenue reaching $935.19 million, a 23.3% increase from the previous year, significantly surpassing the Zacks Consensus Estimate of $803.58 million. Earnings per share (EPS) came in at $1.98, beating the consensus estimate of $1.85. The company has maintained its guidance in the upper half of its 2025 financial projections, reflecting robust financial health and strategic execution.

Revenue
One Gas achieved a total revenue of $935.19 million in 2025 Q1. The revenue from natural gas sales to customers was $875.25 million, while transportation revenues contributed $43.75 million. Securitization customer charges added $11.64 million, and miscellaneous revenues were $6.62 million. Other natural gas sales-related revenues had a deficit of $4.82 million, offset by other revenues of $2.76 million, leading to the total revenue.

Earnings/Net Income
One Gas experienced a 13.7% increase in EPS, rising to $1.99 in 2025 Q1 from $1.75 in the previous year, indicating continued earnings growth. The company's net income rose by 20.2% to $119.42 million from $99.32 million in 2024 Q1. The EPS growth reflects a positive trend in the company's financial performance.

Price Action
The stock price of One Gas increased by 0.95% on the latest trading day, following a 3.30% rise over the past week, and a 5.91% increase month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing One Gas shares following a quarter-over-quarter revenue increase and holding for 30 days has underperformed over the last five years. This approach has yielded a negative return of -6.35%, significantly lagging behind the benchmark return of 83.12%. This results in an excess return of -89.47% and a compound annual growth rate (CAGR) of -1.32%, indicating considerable losses. The strategy also experienced a maximum drawdown of -11.02% and a Sharpe ratio of -0.22, illustrating high risk and negative returns. Despite this, One Gas has shown resilience in its financial metrics and continues to focus on long-term growth strategies.

CEO Commentary
"Safety remains our top priority as we serve our customers and meet the growing demand for natural gas across our service territory," stated Robert S. McAnnally, President and Chief Executive Officer. The company achieved strong financial results in the first quarter due to an effective regulatory strategy and disciplined expense management. The increase in net income to $119.4 million reflects a successful adaptation to colder weather and new rates, while investments in workforce and operational oversight enhance overall expense management.

Guidance
The company expects to achieve the upper half of its 2025 financial guidance, anticipating net income in the range of $254 million to $261 million and earnings per diluted share of $4.20 to $4.32. Capital investments, including asset removal costs, are projected to be approximately $750 million, focusing on system integrity and customer extensions estimated at $180 million.

Additional News
In recent weeks, One Gas has announced a quarterly dividend of $0.67 per share, reflecting an annualized payout of $2.68, payable on June 3, 2025. This move underscores the management's confidence in the company's ongoing financial strength. Additionally, One Gas has been active in regulatory activities, with ongoing rate cases in Oklahoma, Kansas, and Texas, aimed at securing further revenue stability. These developments are part of the company's strategic focus on maintaining a robust regulatory calendar to enhance future growth prospects.