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ONE Gas (OGS) Q1 Earnings Miss Estimates, Revenues Beat

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ONE Gas Inc. (OGS - Free Report) reported first-quarter 2022 operating earnings per share (EPS) of $1.83, which missed the Zacks Consensus Estimate of $1.95 by 6.2%.

However, the bottom line improved by 2.2% from the year-ago earnings of $1.79 per share, primarily due to contributions from the new rates, demand from an expanding residential customer base and a fall in bad debt expenses.

Total Revenues

ONE Gas recorded revenues of $971.5 million in the first quarter, which surpassed the Zacks Consensus Estimate of $642 million by 51.3%. The top line also improved by 55.4% 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

Highlights of the Release

Total natural gas volumes delivered in the first quarter were 148.2billion cubic feet, up 0.9% from the year-ago level due to an improving transportation sales volume and the commercial and industrial sales volumes.

Total operating expenses in the reported quarter increased 5.5% from the year-ago figure to $190.8 million.

The operating income in the reported quarter increased 8.1% year over year to $140.8 million.

ONE Gas incurred net interest expenses of $15.6 million, up 1.3%.

Financial Highlights

As of Mar 31, 2022, OGS had cash and cash equivalents of $12.4 million compared with $8.9 million as of Dec 31, 2021.

Long-term debt (excluding current maturities) was $2,283.6 million as of Mar 31, 2022, compared with $3,683.4 million as of Dec 31, 2021.

Cash provided by (used in) the operating activities for the first three months of 2022 was $107.6 million compared with $1,659.3 million in year-ago quarter.

Guidance

ONE Gas affirmed the 2022 net income in the range of $215-$227 million and EPS in the band of $3.96-$4.20. The midpoint of the earnings guidance is $4.08, lower than the Zacks Consensus Estimate of $4.10 per share.

Capital expenditure is expected at $650 million for 2022.

The board of directors declared a second-quarter dividend of 62 cents per share or $2.48 per share on an annualized basis, up 6.9% from the year-ago quarter, payable on Jun 1, 2022 to shareholders of record at the close of the business on May 16, 2022. 

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 slated to report first-quarter 2022 earnings on May 4 after market close. The Zacks Consensus Estimate for Atmos Energy’s first-quarter EPS is pegged at $2.39.

Atmos Energy’s long-term earnings growth is currently pegged at 7.3%. The Zacks Consensus Estimate for ATO’s 2022 earnings implies year-over-year growth of 7.4%.

National Fuel Gas Company (NFG - Free Report) is slated to report first-quarter 2022 earnings on May 6 before market open. The Zacks Consensus Estimate for National Fuel Gas Company’s first-quarter EPS is pegged at $1.68.

National Fuel Gas Company’s long-term earnings growth is currently pegged at 10.3%. The Zacks Consensus Estimate for NFG’s 2022 earnings implies year-over-year growth of 41.5%.

MDU Resources Group (MDU - Free Report) is slated to report first-quarter 2022 earnings on May 5 before market open. The Zacks Consensus Estimate for MDU Resources Group’s first-quarter EPS is pegged at 17 cents.

MDU Resources Group’s long-term earnings growth is currently pegged at 6.7%. The Zacks Consensus Estimate for MDU’s 2022 earnings implies year-over-year growth of 9.1%.