It has been about a month since the last earnings report for ONE Gas (OGS Quick QuoteOGS - Free Report) . Shares have added about 0.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is ONE Gas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

OGS Q2 Earnings Surpass Estimates on Higher Rates, Sales Decline

ONE Gas, Inc. reported second-quarter 2026 adjusted earnings of 82 cents per share, beating the Zacks Consensus Estimate of 65 cents by 26.2%. The bottom line surged 51.9% from 54 cents in the year-ago quarter, aided by higher revenues from new rates and lower net interest expense.

OGS’ Revenues

ONE Gas recorded revenues of $411.64 million, which missed the Zacks Consensus Estimate of $440 million by 6.5%. The top line also decreased 2.9% from $423.74 million in the prior-year quarter.

OGS Revenue Trends and Volume Mix

Natural gas sales were $357.8 million, down 3.2% from $369.5 million in the second quarter of 2025. Transportation revenues increased 2.6% to $31.8 million, while other revenues rose 11% to $11.1 million. Securitization customer charges declined 17.4% to $10.9 million.

The company generated $16.4 million of incremental revenues from new rates, $1.4 million from higher residential sales, primarily reflecting customer growth in Oklahoma and Texas, and $1.3 million from increased line-extension revenues in Oklahoma.

ONE Gas Earnings Drivers and Regulatory Progress

Total natural gas volumes delivered were 66.6 billion cubic feet, down 1.5% on a year-over-year basis. OGS served 2,308,000 customers, up 0.3% year over year. 

Sales volumes fell 15.9% to 15.9 billion cubic feet, while transportation volumes increased 4.1% to 50.7 billion cubic feet.

Total operating expenses were $238.7 million, up 2% year over year. The increase was due to higher operations and maintenance expenses, which rose 6.6% to $139.6 million, reflecting higher employee-related costs, outside services and fleet expenses.

Operating income totaled $82.7 million, up 15% from $71.9 million recorded in the year-ago quarter.

Net interest expense declined 11.8% to $31.1 million, primarily due to lower-rate commercial paper borrowings and the implementation of Texas House Bill 4384. These factors supported the sharp year-over-year improvement in adjusted earnings.

Texas Gas Service received approval for a $36.9 million revenue increase under its Gas Reliability Infrastructure Program. The new rates became effective in July 2026, supporting the recovery of investments in system reliability.

ONE Gas Cash Flow and Balance Sheet

Cash and cash equivalents were $7.9 million at June 30, 2026 and $10.6 million at Dec. 31, 2025. Total cash, cash equivalents and restricted cash and cash equivalents were $30.6 million and $33.7 million, respectively

As of June 30, 2026, total long-term debt (excluding current maturities) was $2.34 billion, down from $2.36 billion as of Dec. 31, 2025.

Cash provided by operating activities totaled $387.3 million during the first six months of 2026, down from $448.8 million in the comparable 2025 period. Capital expenditures totaled $330 million compared with $347.1 million a year ago.

ONE Gas Raises 2026 Earnings View

OGS expects its 2026 adjusted net income in the range of $306-$314 million. The company projects 2026 adjusted earnings of $4.83-$4.95 per share, with management now expecting results to fall within the upper half of this range. The Zacks Consensus Estimate for EPS is pegged at $4.91, which is slightly above the midpoint of the company’s guided range.

In 2026, OGS plans to make capital investments, including asset removal costs, of $800 million and nearly $230 million for new customer extensions.

 

How Have Estimates Been Moving Since Then?

Investors have witnessed a upward trend in fresh estimates over the past two months.

VGM Scores

At this time, ONE Gas has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

ONE Gas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.