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ONE Gas Q1 Earnings Higher Than Estimates, Revenues Rise Y/Y

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ONE Gas, Inc. (OGS - Free Report) reported first-quarter 2025 operating earnings per share (EPS) of $1.98, which beat the Zacks Consensus Estimate of $1.85 by 7%. The figure also came in 13.1% higher than the year-ago quarter’s earnings of $1.75. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

OGS’ Revenues

ONE Gas recorded revenues of $935.2 million, which surpassed the Zacks Consensus Estimate of $804 million by 16.4%. The top line also increased 23.3% from $758.3 million in the prior-year quarter.

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 OGS’ Earnings Release

Total natural gas volumes delivered were 144.6 billion cubic feet, up 8% on a year-over-year basis. OGS served 2,305,000 customers, up 0.7% year over year. This increase in sales volume was due to higher year-over-year demand from residential, commercial and industrial customers.

Total operating expenses were $242.2 million, up 5.6% year over year. The increase in expenses was due to a rise in operations and maintenance expenses, depreciation and amortization expenses, as well as general taxes.

Operating income increased 23.7% year over year to $180.5 million.

OGS incurred net interest expenses of $35.7 million, up 13.8% on a year-over-year basis.

OGS’ Financial Highlights

As of March 31, 2025, OGS had cash and cash equivalents of $19.3 million compared with $58 million as of Dec. 31, 2024.

Total long-term debt (excluding current maturities) was $2.37 billion as of March 31, 2025 compared with $2.39 billion as of Dec. 31. 2024.

Cash provided by operating activities in the first three months of 2025 was $277.5 million compared with $108.3 million in the year-ago period.

In the first quarter of 2025, capital expenditures were $166.6 million compared with $166.8 million in the year-ago period.

OGS’ 2025 Guidance

OGS expects to achieve the upper half of the 2025 financial guidance. OGS continues to expect its 2025 net income in the range of $254-$261 million. Earnings per diluted share are expected in the range of $4.20-$4.32 per share. The Zacks Consensus Estimate for earnings is pegged at $4.26 per share, which lies at the midpoint of the company’s guided range.

OGS continues to expect capital investments, including asset removal costs, of nearly $750 million. Capital investments for extensions to new customers are expected to be nearly $180 million.

OGS’ 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.

Recent Releases

National Fuel Gas Company (NFG - Free Report) reported second-quarter fiscal 2025 adjusted operating earnings of $2.39 per share, which surpassed the Zacks Consensus Estimate of $2.18 by 9.6%. The bottom line also increased 33.5% from the year-ago quarter’s reported figure of $1.79.

NFG reported sales of $730 million, which missed the Zacks Consensus Estimate of $783 million by 6.8%. However, the top line increased 15.9% from the prior-year recorded figure of $629.9 million.

Spire Inc. (SR - Free Report) reported second-quarter fiscal 2025 earnings of $3.60 per share, which lagged the Zacks Consensus Estimate of $3.70 by 2.7%. However, the company’s bottom line improved 4.4% from $3.45 reported in the year-ago quarter.

Total revenues for the reported quarter were $1.05 billion, which missed the Zacks Consensus Estimate of $1.1 billion by 4%. The top line also decreased 6.8% from $1.13 billion in the year-ago quarter.

Upcoming Release

Atmos Energy Corp. (ATO - Free Report) is scheduled to report fiscal second-quarter 2025 results on May 7, after market close. The Zacks Consensus Estimate for earnings is pegged at $2.92 per share, which indicates a year-over-year improvement of 2.5%.

ATO’s long-term (three to five years) earnings growth rate is 7.2%. The Zacks Consensus Estimate for sales is pegged at $1.90 billion, which implies a year-over-year improvement of 15.3%.

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