ONE Gas Inc. (OGS - Free Report) reported first-quarter 2021 earnings of $1.79 per share, beating the Zacks Consensus Estimate of $1.78 by 0.6%.
The bottom line also improved 4.1% from the year-ago earnings, primarily owing to new rates and residential customer growth.
Total Revenues
The company recorded revenues of $625.3 million for the first quarter, which surpassed the Zacks Consensus Estimate of $544 million by 14.9%. The top line also improved 18.4% from the year-ago level.
Quarterly Highlights
Residential natural gas sales volume for the first quarter was 63 billion cubic feet (Bcf), up 14.1% year over year. Total volumes delivered were 146.9 Bcf, up 6.4% from the year-ago period due to improving commercial and industrial sales volume.
Total operating expenses for the reported quarter increased 7.2% from the year-ago figure to $180.9 million.
Operating income for the reported quarter decreased 2.2% year over year to $130.3 million.
For first-quarter 2021, ONE Gas’ customer base rose 1.08% from the year-ago period, primarily due to additions to the residential customer group.
It incurred net interest expenses of $15.4 million, down 1.9% from the prior-year figure.
Capital expenditures and asset removal costs were $109 million for the reported quarter compared with $123.4 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 Mar 31, 2021, ONE Gas had cash and cash equivalents of $704.9 million compared with $8 million at 2020-end.
Long-term debt (excluding current maturities) was $4,082.7 million as of Mar 31, 2021 compared with $1,582.2 million at 2020-end.
Cash provided by (used in) operating activities during first-quarter 2021 was ($1659.3) million against $182.7 million in the first quarter 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, higher than the current Zacks Consensus Estimate of $3.79 for the period.
Capital expenditure is expected to be $540 million for 2021, of which more than 70% will be targeted for system integrity and the balance will be used primarily for customer growth.
Zacks Rank
Currently, ONE Gas carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Sempra Energy (SRE - Free Report) is scheduled to release first-quarter 2021 operating earnings on May 5. The Zacks Consensus Estimate for the quarter’s earnings is pegged at $2.60 per share.
Atmos Energy Corporation (ATO - Free Report) is scheduled to release fiscal second-quarter 2021 operating earnings on May 5. The Zacks Consensus Estimate for quarterly earnings is pegged at $2.03 per share.
Spire Inc. (SR - Free Report) is scheduled to release fiscal second-quarter 2021 operating earnings on May 7. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at $3.05 per share.
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ONE Gas Inc. (OGS - Free Report) reported first-quarter 2021 earnings of $1.79 per share, beating the Zacks Consensus Estimate of $1.78 by 0.6%.
The bottom line also improved 4.1% from the year-ago earnings, primarily owing to new rates and residential customer growth.
Total Revenues
The company recorded revenues of $625.3 million for the first quarter, which surpassed the Zacks Consensus Estimate of $544 million by 14.9%. The top line also improved 18.4% from the year-ago level.
Quarterly Highlights
Residential natural gas sales volume for the first quarter was 63 billion cubic feet (Bcf), up 14.1% year over year. Total volumes delivered were 146.9 Bcf, up 6.4% from the year-ago period due to improving commercial and industrial sales volume.
Total operating expenses for the reported quarter increased 7.2% from the year-ago figure to $180.9 million.
Operating income for the reported quarter decreased 2.2% year over year to $130.3 million.
For first-quarter 2021, ONE Gas’ customer base rose 1.08% from the year-ago period, primarily due to additions to the residential customer group.
It incurred net interest expenses of $15.4 million, down 1.9% from the prior-year figure.
Capital expenditures and asset removal costs were $109 million for the reported quarter compared with $123.4 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 Mar 31, 2021, ONE Gas had cash and cash equivalents of $704.9 million compared with $8 million at 2020-end.
Long-term debt (excluding current maturities) was $4,082.7 million as of Mar 31, 2021 compared with $1,582.2 million at 2020-end.
Cash provided by (used in) operating activities during first-quarter 2021 was ($1659.3) million against $182.7 million in the first quarter 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, higher than the current Zacks Consensus Estimate of $3.79 for the period.
Capital expenditure is expected to be $540 million for 2021, of which more than 70% will be targeted for system integrity and the balance will be used primarily for customer growth.
Zacks Rank
Currently, ONE Gas carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Sempra Energy (SRE - Free Report) is scheduled to release first-quarter 2021 operating earnings on May 5. The Zacks Consensus Estimate for the quarter’s earnings is pegged at $2.60 per share.
Atmos Energy Corporation (ATO - Free Report) is scheduled to release fiscal second-quarter 2021 operating earnings on May 5. The Zacks Consensus Estimate for quarterly earnings is pegged at $2.03 per share.
Spire Inc. (SR - Free Report) is scheduled to release fiscal second-quarter 2021 operating earnings on May 7. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at $3.05 per share.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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