ONE Gas Inc. (OGS - Free Report) reported second-quarter 2020 earnings of 48 cents per share, beating the Zacks Consensus Estimate of 45 cents by 6.7%.
The bottom line also improved 4.3% from the year-ago earnings, primarily owing to new rates in Kansas and Texas and residential customer growth, which in turn, spurred demand for natural gas.
The company recorded total revenues of $273.3 million in the second quarter, which missed the Zacks Consensus Estimate of $296 million by 7.7%. Revenues also declined 5.9% from the year-ago level.
Natural gas sales volume delivered in the reported quarter was 20.7 billion cubic feet (Bcf), up 9.5% year over year, primarily on higher residential customer usage. Total volumes delivered in the same period were 71.6 Bcf, up 1.9% from the year-ago period.
Total operating expenses in the reported quarter inched up 3.2% from the year-ago figure to $166.2 million.
Operating income in the reported quarter dipped 4.9% year over year to $44.6 million.
In the second quarter of 2020, the company’s customer base rose 1.1% from the year-ago time frame, which aided its top and the bottom line.
The company incurred net interest expenses of $15.8 million, up 2.9% from the prior-year figure.
As of Jun 30, 2020, ONE Gas had cash and cash equivalents of $10.5 million compared with $17.9 million at the end of 2019.
Long-term debt (excluding current maturities) was $1,581.9 million as of Jun 30, 2020, compared with $1,286.1 million as of Dec 31, 2019.
Cash provided by operating activities in first-half 2020 was $278.7 million compared with $241.2 million in the year-ago period.
ONE Gas reiterated its 2020 guidance for net income in the range of $186-$198 million. Its earnings per share outlook are projected in the $3.44-$3.68 band. The midpoint of management’s 2020 EPS guidance is $3.56, marginally higher than the current Zacks Consensus Estimate of $3.55 for the period.
Capital expenditure view including asset removal costs is increased to $500-$525 million from $475 million, primarily due to the extension of services to new customers.
Currently, ONE Gas carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks heree.
Sempra Energy (SRE - Free Report) is slated to release second-quarter 2020 earnings on Aug 5. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pegged at $1.65.
Atmos Energy Corp. (ATO - Free Report) is scheduled to release third-quarter fiscal 2020 results on Aug 5. The Zacks Consensus Estimate for earnings per share in the fiscal third quarter is pegged at 77 cents.
National Fuel Gas Company (NFG - Free Report) is set to release third-quarter fiscal 2020 results on Aug 6. The Zacks Consensus Estimate for the quarterly earnings per share stands at 50 cents.
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