One Gas 2025 Q2 Earnings Sustained Growth with 17.6% Net Income Surge

One Gas reported strong Q2 2025 results, surpassing expectations with a 17.6% year-over-year increase in net income. The company also raised its full-year earnings guidance, signaling confidence in its performance trajectory.

Revenue
One Gas reported total revenue of $423.74 million in the second quarter of 2025, reflecting a 19.7% increase from $354.14 million in the same period of 2024. The growth was driven by strong performance across its core operations, with natural gas sales to customers accounting for the largest share at $364.19 million. Additional revenue streams, such as transportation services, contributed $30.72 million, while securitization customer charges added $13.21 million. Smaller but consistent contributions came from miscellaneous revenues ($6.69 million), other revenues related to natural gas sales ($5.55 million), and other general revenues ($3.39 million), collectively supporting the overall growth in the company's top line.

Earnings/Net Income
One Gas delivered another quarter of strong profitability, with net income rising 17.6% to $32.03 million in Q2 2025, compared to $27.24 million in the prior-year period. Earnings per share also climbed by 10.4% to $0.53 from $0.48, highlighting the company’s effective cost management and operational execution. This performance marks the company’s 13th consecutive year of profitability in the second quarter, underscoring its stable business model and long-term value creation.

Price Action
The company’s stock price demonstrated positive short-term momentum, with gains of 2.02% on the latest trading day, 1.21% over the past full week, and 1.54% month-to-date, reflecting investor optimism.

Post-Earnings Price Action Review
A post-earnings strategy involving purchasing the stock when results beat expectations and selling after 30 days generated a 14.18% return, which underperformed the 83.32% benchmark return. Despite the lower return, the strategy exhibited a Sharpe ratio of 0.23, indicating a moderate level of risk-adjusted performance. Additionally, the strategy experienced no significant drawdowns, as the maximum loss was recorded at 0%.

CEO Commentary
Robert S. McAnnally, President and CEO, credited the strong results to operational performance, effective cost management, and progress on regulatory initiatives. He emphasized the company’s long-term strategic focus on delivering safe, reliable service to its communities, expressing confidence in the company’s ability to maintain its performance in a dynamic operational and regulatory environment.

Guidance
Building on its second-quarter performance, One Gas raised its 2025 diluted EPS guidance to a range of $4.32 to $4.42, up from the previous range of $4.20 to $4.32. The company also executed a forward sale agreement for 2.5 million shares at $78.47 per share, with settlement expected by December 31, 2026.

Additional News
On August 5, 2025, ONE Gas announced the release of its second-quarter 2025 earnings results, highlighting strong performance and updated guidance. The company also reiterated its commitment to transparent financial reporting and emphasized the use of non-GAAP measures, such as net margin, which excludes fluctuations in the cost of natural gas to better reflect operational performance. In addition to financial updates, the company provided extensive corporate and governance information, including details on sustainability, community initiatives, and investor relations. The company reiterated its focus on long-term value creation and regulatory compliance, while reiterating the legal disclaimers and third-party data usage policies that govern its public-facing disclosures.