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ONE Gas' (OGS) Q4 Earnings and Revenues Beat Estimates
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ONE Gas, Inc. (OGS - Free Report) reported fourth-quarter 2022 operating earnings per share (EPS) of $1.23, which surpassed the Zacks Consensus Estimate of $1.20 by 2.5%. The bottom line increased 9.8% from the year-ago figure of $1.12.
OGS reported full-year 2022 earnings of $4.08 per share, up 6% from the previous year’s $3.85.
Total Revenues
ONE Gas recorded revenues of $818.2 million in the fourth quarter, which surpassed the Zacks Consensus Estimate of $644 million by 27%. The top line also increased 37.7% from the year-ago level.
Total revenues for 2022 came in at $2,578 million, up 42.5% from $1,808.6 million in 2021.
Total natural gas volumes delivered in the fourth quarter were 116.6 billion cubic feet, up 17.3% from the year-ago level. In the reported quarter, ONE Gas served 2,254,000 customers, up 0.7% from the year-ago quarter’s level.
Total operating expenses in the reported quarter were $209.9 million, up 5.6% from the year-ago figure.
The operating income in the reported quarter increased 19.1% year over year to $103.6 million.
ONE Gas incurred net interest expenses of $26 million, up 80% from the year-ago figure.
Financial Highlights
As of Dec 31, 2022, OGS had cash and cash equivalents of $9.7 million compared with $8.9 million as of Dec 31, 2021.
Long-term debt (excluding current maturities) was $2,661.7 million as of Dec 31, 2022 compared with $3,683.4 million as of Dec 31, 2021.
Cash provided by operating activities for 2022 was $1,570.8 million against $1,535.7 million used in operating activities in 2021.
Guidance
ONE Gas expects 2023 net income in the range of $224-$238 million. The company’s 2023 EPS expectations are in the range of $4.02-$4.26 per share. The Zacks Consensus Estimate for earnings of $4.12 per share is 2 cents lower than the mid-point of the company’s guided range.
Capital expenditure is expected to be $675 million for 2023, with 70% of this amount attributed to system integrity and replacement projects.
For 2023, capital investments for new customer extensions are expected to be $185 million.
Zacks Rank
Currently, ONE Gas carries a Zacks Rank #4 (Sell).
The AES Corporation (AES - Free Report) is slated to report fourth-quarter results on Feb 27, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 46 cents per share, implying a year-over-year increase of 2.2%.
AES’s long-term (three to five years) earnings growth is currently pegged at 8.53%. The Zacks Consensus Estimate for 2023 EPS is $1.75, implying a year-over-year increase of 6.1%.
Essential Utilities Inc. (WTRG - Free Report) is slated to report fourth-quarter results on Feb 27, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 45 cents per share, implying a year-over-year increase of 2.3%.
WTRG’s long-term earnings growth is currently pegged at 6%. The Zacks Consensus Estimate for 2023 EPS is $1.89, implying a year-over-year increase of 6.5%.
Global Water Resources, Inc. (GWRS - Free Report) is slated to report fourth-quarter results on Mar 9, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 3 cents per share, implying a year-over-year increase of 50%.
GWRS’s long-term earnings growth is currently pegged at 15%. The Zacks Consensus Estimate for 2023 EPS is 25 cents, implying a year-over-year increase of 8.7%.
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ONE Gas' (OGS) Q4 Earnings and Revenues Beat Estimates
ONE Gas, Inc. (OGS - Free Report) reported fourth-quarter 2022 operating earnings per share (EPS) of $1.23, which surpassed the Zacks Consensus Estimate of $1.20 by 2.5%. The bottom line increased 9.8% from the year-ago figure of $1.12.
OGS reported full-year 2022 earnings of $4.08 per share, up 6% from the previous year’s $3.85.
Total Revenues
ONE Gas recorded revenues of $818.2 million in the fourth quarter, which surpassed the Zacks Consensus Estimate of $644 million by 27%. The top line also increased 37.7% from the year-ago level.
Total revenues for 2022 came in at $2,578 million, up 42.5% from $1,808.6 million in 2021.
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 fourth quarter were 116.6 billion cubic feet, up 17.3% from the year-ago level. In the reported quarter, ONE Gas served 2,254,000 customers, up 0.7% from the year-ago quarter’s level.
Total operating expenses in the reported quarter were $209.9 million, up 5.6% from the year-ago figure.
The operating income in the reported quarter increased 19.1% year over year to $103.6 million.
ONE Gas incurred net interest expenses of $26 million, up 80% from the year-ago figure.
Financial Highlights
As of Dec 31, 2022, OGS had cash and cash equivalents of $9.7 million compared with $8.9 million as of Dec 31, 2021.
Long-term debt (excluding current maturities) was $2,661.7 million as of Dec 31, 2022 compared with $3,683.4 million as of Dec 31, 2021.
Cash provided by operating activities for 2022 was $1,570.8 million against $1,535.7 million used in operating activities in 2021.
Guidance
ONE Gas expects 2023 net income in the range of $224-$238 million. The company’s 2023 EPS expectations are in the range of $4.02-$4.26 per share. The Zacks Consensus Estimate for earnings of $4.12 per share is 2 cents lower than the mid-point of the company’s guided range.
Capital expenditure is expected to be $675 million for 2023, with 70% of this amount attributed to system integrity and replacement projects.
For 2023, capital investments for new customer extensions are expected to be $185 million.
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
The AES Corporation (AES - Free Report) is slated to report fourth-quarter results on Feb 27, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 46 cents per share, implying a year-over-year increase of 2.2%.
AES’s long-term (three to five years) earnings growth is currently pegged at 8.53%. The Zacks Consensus Estimate for 2023 EPS is $1.75, implying a year-over-year increase of 6.1%.
Essential Utilities Inc. (WTRG - Free Report) is slated to report fourth-quarter results on Feb 27, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 45 cents per share, implying a year-over-year increase of 2.3%.
WTRG’s long-term earnings growth is currently pegged at 6%. The Zacks Consensus Estimate for 2023 EPS is $1.89, implying a year-over-year increase of 6.5%.
Global Water Resources, Inc. (GWRS - Free Report) is slated to report fourth-quarter results on Mar 9, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 3 cents per share, implying a year-over-year increase of 50%.
GWRS’s long-term earnings growth is currently pegged at 15%. The Zacks Consensus Estimate for 2023 EPS is 25 cents, implying a year-over-year increase of 8.7%.