ONE Gas, Inc. (OGS - Free Report) reported second-quarter 2023 operating earnings per share (EPS) of 58 cents, which missed the Zacks Consensus Estimate of 59 cents by 1.7%. The bottom line also decreased 1.7% from the year-ago quarter’s recorded figure of 59 cents.
Total Revenues
ONE Gas recorded revenues of $398.1 million, which missed the Zacks Consensus Estimate of $454 million by 12.3%. The top line also decreased 7.2% from $429 million in the prior-year period.
Highlights of the Release
Total natural gas volumes delivered in the reported quarter were 71.7 billion cubic feet (bcf), down 3.1% from the year-ago quarter’s level. ONE Gas served 2,268,000 customers during the reported quarter, up 0.3% year over year. Actual performance was a tad lower than our model prediction. Our model predicted 75.8 bcf total natural gas volumes delivered and 2,282,000 total customers served.
Total operating expenses were $203.9 million, up 11.9% from that recorded in the comparable period of 2022.
Operating income increased 9.2% year over year to $64 million.
ONE Gas incurred net interest expenses of $27.5 million, up 68.7% from the year-ago quarter’s level.
Financial Highlights
As of Jun 30, 2023, OGS had cash and cash equivalents of $7.3 million compared with $9.7 million as of Dec 31, 2022.
Long-term debt (excluding current maturities) was $1,876.2 million as of Jun 30, 2023, compared with $2,661.7 million as of Dec 31, 2022.
In first six months of 2023, cash provided by operating activities was $748.7 million compared with $286.7 million in the year-ago period.
2023 Guidance
ONE Gas has reaffirmed its net income guidance in the range of $224-$238 million. The company’s EPS expectations lie in the band of $4.02-$4.26 per share. The Zacks Consensus Estimate for earnings is pegged at $4.13 per share, a cent lower than the mid-point of the company’s guided range.
OGS continues to expect capital expenditures, including asset removal costs, of approximately $675 million.
Zacks Rank
Currently, ONE Gas carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Spire Inc. (SR - Free Report) is scheduled to report fiscal third-quarter results on Aug 2, before market open. The Zacks Consensus Estimate for earnings is pegged at a loss of 2 cents per share.
SR’s long-term (three to five years) earnings growth rate is 4.22%. The company delivered an average earnings surprise of 9.4% in the last four quarters.
Atmos Energy Corporation (ATO - Free Report) is slated to report fiscal third-quarter results on Aug 2, after market close. The Zacks Consensus Estimate for earnings is pegged at 95 cents per share, implying a year-over-year increase of 3.3%.
ATO’s long-term earnings growth rate is 7.48%. It delivered an average earnings surprise of 4.9% in the last four quarters.
NewJersey Resources (NJR - Free Report) is slated to report fiscal third-quarter results on Aug 3, before market open. The Zacks Consensus Estimate for earnings is pegged at a loss of 3 cents per share, implying a year-over-year improvement of 25%.
NJR’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for fiscal 2023 earnings is pegged at $2.63 per share, implying year-over-year growth of 5.2%.
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ONE Gas, Inc. (OGS - Free Report) reported second-quarter 2023 operating earnings per share (EPS) of 58 cents, which missed the Zacks Consensus Estimate of 59 cents by 1.7%. The bottom line also decreased 1.7% from the year-ago quarter’s recorded figure of 59 cents.
Total Revenues
ONE Gas recorded revenues of $398.1 million, which missed the Zacks Consensus Estimate of $454 million by 12.3%. The top line also decreased 7.2% from $429 million in the prior-year period.
Highlights of the Release
Total natural gas volumes delivered in the reported quarter were 71.7 billion cubic feet (bcf), down 3.1% from the year-ago quarter’s level. ONE Gas served 2,268,000 customers during the reported quarter, up 0.3% year over year. Actual performance was a tad lower than our model prediction. Our model predicted 75.8 bcf total natural gas volumes delivered and 2,282,000 total customers served.
Total operating expenses were $203.9 million, up 11.9% from that recorded in the comparable period of 2022.
Operating income increased 9.2% year over year to $64 million.
ONE Gas incurred net interest expenses of $27.5 million, up 68.7% from the year-ago quarter’s level.
Financial Highlights
As of Jun 30, 2023, OGS had cash and cash equivalents of $7.3 million compared with $9.7 million as of Dec 31, 2022.
Long-term debt (excluding current maturities) was $1,876.2 million as of Jun 30, 2023, compared with $2,661.7 million as of Dec 31, 2022.
In first six months of 2023, cash provided by operating activities was $748.7 million compared with $286.7 million in the year-ago period.
2023 Guidance
ONE Gas has reaffirmed its net income guidance in the range of $224-$238 million. The company’s EPS expectations lie in the band of $4.02-$4.26 per share. The Zacks Consensus Estimate for earnings is pegged at $4.13 per share, a cent lower than the mid-point of the company’s guided range.
OGS continues to expect capital expenditures, including asset removal costs, of approximately $675 million.
Zacks Rank
Currently, ONE Gas carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Spire Inc. (SR - Free Report) is scheduled to report fiscal third-quarter results on Aug 2, before market open. The Zacks Consensus Estimate for earnings is pegged at a loss of 2 cents per share.
SR’s long-term (three to five years) earnings growth rate is 4.22%. The company delivered an average earnings surprise of 9.4% in the last four quarters.
Atmos Energy Corporation (ATO - Free Report) is slated to report fiscal third-quarter results on Aug 2, after market close. The Zacks Consensus Estimate for earnings is pegged at 95 cents per share, implying a year-over-year increase of 3.3%.
ATO’s long-term earnings growth rate is 7.48%. It delivered an average earnings surprise of 4.9% in the last four quarters.
NewJersey Resources (NJR - Free Report) is slated to report fiscal third-quarter results on Aug 3, before market open. The Zacks Consensus Estimate for earnings is pegged at a loss of 3 cents per share, implying a year-over-year improvement of 25%.
NJR’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for fiscal 2023 earnings is pegged at $2.63 per share, implying year-over-year growth of 5.2%.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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