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ONE Gas' (OGS) Q2 Earnings and Revenues Surpass Estimates

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ONE Gas Inc. (OGS - Free Report) reported second-quarter 2021 earnings of 56 cents per share, beating the Zacks Consensus Estimate of 49 cents by 14.3%.

The bottom line also improved 16.7% from the year-ago earnings, primarily owing to new rates and residential customer growth.

Total Revenues

The company recorded revenues of $315.6 million for the second quarter, which surpassed the Zacks Consensus Estimate of $289 million by 9.2%. The top line also improved 15.5% from the year-ago level.

ONE Gas, Inc. Price, Consensus and EPS Surprise

ONE Gas, Inc. Price, Consensus and EPS Surprise

ONE Gas, Inc. price-consensus-eps-surprise-chart | ONE Gas, Inc. Quote

Quarterly Highlights

Residential natural gas sales volume for the second quarter was 14.8 billion cubic feet (Bcf), down 5.1% year over year. Total volumes delivered were 73.3 Bcf, up 2.4% from the year-ago period due to improving commercial and industrial sales volume.

Total operating expenses for the reported quarter increased 2.8% from the year-ago figure to $170.8 million.

Operating income for the reported quarter increased 14.6% year over year to $51.1 million.

For second-quarter 2021, ONE Gas’ customer base rose 1.1% from the year-ago period, primarily due to additions to the residential customer group.

It incurred net interest expenses of nearly $15 million, down 5.4% from the prior-year figure.

Capital expenditures and asset removal costs were $129.4 million for the reported quarter compared with $130.6 million in the year-ago period. The decrease was due to a difference in the timing of capital projects between the two periods.

Financial Highlights

As of Jun 30, 2021, ONE Gas had cash and cash equivalents of $209.1 million compared with $8 million at 2020-end.

Long-term debt (excluding current maturities) was $4,082.8 million as of Jun 30, 2021 compared with $1,582.2 million at 2020-end.

Cash provided by (used in) operating activities during first-half 2021 was ($1,577.3) million against $278.7 million in the first half of 2020.

Guidance

ONE Gas reaffirmed 2021 net income guided range of $198-$210 million and earnings per share expectation in the $3.68-$3.92 band. The midpoint of its EPS guidance is $3.80, in line with the current Zacks Consensus Estimate of $3.79 for the period. Capital expenditure is expected to be $540 million for 2021.

Zacks Rank

Currently, ONE Gas carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Atmos Energy Corporation (ATO - Free Report) is scheduled to release fiscal third-quarter 2021 operating earnings on Aug 4. The Zacks Consensus Estimate for quarterly earnings is pegged at 74 cents per share.

MDU Resources Group (MDU - Free Report) is scheduled to release fiscal third-quarter 2021 operating earnings on Aug 5. The Zacks Consensus Estimate for quarterly earnings is pegged at 53 cents per share.

Sempra Energy (SRE - Free Report) is scheduled to release second-quarter 2021 operating earnings on Aug 5. The Zacks Consensus Estimate for the quarter’s earnings is pegged at $1.59 per share.

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