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ONE Gas Q3 Earnings Beat Estimates on New Rates, Revenues Rise Y/Y
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Key Takeaways
ONE Gas' Q3 adjusted EPS rose 12.8% to 53 cents, beating estimates by 10.42%, while revenues grew 3.2%.
New rates added $13.5M in revenues, while residential sales contributed $3.3M amid customer growth.
ONE Gas raised 2026 adjusted EPS guidance to $4.95-$5.01, retaining $800M capex.
ONE Gas, Inc. (OGS - Free Report) reported third-quarter 2026 adjusted earnings of 53 cents per share, beating the Zacks Consensus Estimate of 48 cents by 10.42%. The bottom line increased 12.8% from 47 cents in the year-ago quarter, aided by higher revenues from new rates and residential customer growth.
OGS’ Revenues
ONE Gas recorded revenues of $391.31 million, which missed the Zacks Consensus Estimate of $401 million by 2.49%. The top line increased 3.2% from $379.13 million in the prior-year quarter.
Natural gas sales increased 3.4% to $338.4 million from $327.3 million in the third quarter of 2025. Transportation revenues rose 2.6% to $31.8 million, while other revenues increased 2.1% to $9.8 million. Securitization customer charges increased 1.8% to $11.4 million.
ONE Gas generated $13.5 million in incremental revenues from new rates. Higher residential sales contributed another $3.3 million, primarily reflecting net customer growth in Oklahoma and Texas. These factors supported the year-over-year improvement in operating performance.
OGS Operations, Earnings Drivers and Regulatory Updates
Total natural gas volumes delivered rose 1.5% year over year to 59.3 billion cubic feet (Bcf).
The average number of customers increased 0.5% year over year to 2,295,000, reflecting growth across the company's service territories.
Natural gas sales volumes declined 4.9% to 11.7 Bcf from 12.3 Bcf in the prior-year quarter. Transportation volumes increased 3.3% to 47.6 Bcf from 46.1 Bcf.
Total operating expenses were $240.1 million, up 1.3% year over year, primarily due to higher depreciation and amortization expenses, which increased 3.5% to $79.6 million, and a 1.6% rise in general taxes to $23.4 million. These increases were partially offset by a marginal decline in operations and maintenance expenses.
Operating income totaled $77.4 million, up 18.4% from $65.4 million in the year-ago quarter.
Net interest expense increased to $36.6 million from $35.4 million, primarily reflecting borrowing costs associated with the $250 million term loan that matured in September and the issuance of senior notes.
Kansas Gas Service received approval for an approximately $14.3 million revenue increase under its Gas System Reliability Surcharge. The Kansas Corporation Commission approved the application in September 2026, and the new rates became effective in October.
Texas Gas Service received approval for a $36.9 million revenue increase under its Gas Reliability Infrastructure Program, effective July 2026. Meanwhile, the Oklahoma Corporation Commission approved Oklahoma Natural Gas' annual rate application in October.
The application included a $28.7 million base rate revenue increase and a $2.6 million energy efficiency incentive. The commission's order has been appealed to the Oklahoma Supreme Court.
OGS Cash Flow and Balance Sheet
Cash and cash equivalents amounted to $7.3 million as of Sept. 30, 2026 compared with $10.6 million as of Dec. 31, 2025.
As of Sept. 30, 2026, total long-term debt, excluding current maturities, rose to $2.70 billion from $2.36 billion as of Dec. 31, 2025.
Cash provided by operating activities totaled $507.8 million during the first nine months of 2026, down 5.2% from $535.8 million in the comparable 2025 period. Capital expenditures were $542.5 million compared with $539.4 million a year ago.
ONE Gas Raises 2026 Earnings Guidance
ONE Gas raised its 2026 adjusted net income guidance to $313-$317 million from the previous range of $310-$314 million.
The company increased its adjusted earnings guidance to $4.95-$5.01 per share from $4.89-$4.95. The Zacks Consensus Estimate for earnings per share (EPS) is pegged at $4.91, which is slightly below the midpoint of the company’s guided range.
OGS continues to expect capital investments, including asset removal costs, of approximately $800 million in 2026, primarily targeting system integrity and replacement projects. Nearly $230 million of the planned investments will support extensions to new customers.
Duke Energy (DUK - Free Report) is scheduled to report third-quarter 2026 results on Nov. 5, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $1.87 per share, which implies year-over-year growth of 3.31%.
DUK’s long-term (three to five years) earnings growth rate is 6.38%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $8.90 billion, which implies a year-over-year improvement of 4.15%.
Evergy (EVRG - Free Report) is set to report third-quarter 2026 results on Nov. 5, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $2.30 per share, which implies year-over-year growth of 13.30%.
EVRG’s long-term earnings growth rate is 9.07%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $1.90 billion, which implies a year-over-year improvement of 4.71%.
PPL Corporation (PPL - Free Report) is scheduled to report third-quarter 2026 results on Nov. 6, before the market opens. The Zacks Consensus Estimate for earnings is pegged at 53 cents per share, which implies year-over-year growth of 10.42%.
PPL’s long-term earnings growth rate is 5.26%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $2.44 billion, which implies a year-over-year improvement of 8.91%.
View the Zacks #1 Rank List
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ONE Gas Q3 Earnings Beat Estimates on New Rates, Revenues Rise Y/Y
Key Takeaways
ONE Gas, Inc. (OGS - Free Report) reported third-quarter 2026 adjusted earnings of 53 cents per share, beating the Zacks Consensus Estimate of 48 cents by 10.42%. The bottom line increased 12.8% from 47 cents in the year-ago quarter, aided by higher revenues from new rates and residential customer growth.
OGS’ Revenues
ONE Gas recorded revenues of $391.31 million, which missed the Zacks Consensus Estimate of $401 million by 2.49%. The top line increased 3.2% from $379.13 million in the prior-year quarter.
ONE Gas, Inc. Price, Consensus and EPS Surprise
ONE Gas, Inc. price-consensus-eps-surprise-chart | ONE Gas, Inc. Quote
OGS Revenue Trends and Sales Performance
Natural gas sales increased 3.4% to $338.4 million from $327.3 million in the third quarter of 2025. Transportation revenues rose 2.6% to $31.8 million, while other revenues increased 2.1% to $9.8 million. Securitization customer charges increased 1.8% to $11.4 million.
ONE Gas generated $13.5 million in incremental revenues from new rates. Higher residential sales contributed another $3.3 million, primarily reflecting net customer growth in Oklahoma and Texas. These factors supported the year-over-year improvement in operating performance.
OGS Operations, Earnings Drivers and Regulatory Updates
Total natural gas volumes delivered rose 1.5% year over year to 59.3 billion cubic feet (Bcf).
The average number of customers increased 0.5% year over year to 2,295,000, reflecting growth across the company's service territories.
Natural gas sales volumes declined 4.9% to 11.7 Bcf from 12.3 Bcf in the prior-year quarter. Transportation volumes increased 3.3% to 47.6 Bcf from 46.1 Bcf.
Total operating expenses were $240.1 million, up 1.3% year over year, primarily due to higher depreciation and amortization expenses, which increased 3.5% to $79.6 million, and a 1.6% rise in general taxes to $23.4 million. These increases were partially offset by a marginal decline in operations and maintenance expenses.
Operating income totaled $77.4 million, up 18.4% from $65.4 million in the year-ago quarter.
Net interest expense increased to $36.6 million from $35.4 million, primarily reflecting borrowing costs associated with the $250 million term loan that matured in September and the issuance of senior notes.
Kansas Gas Service received approval for an approximately $14.3 million revenue increase under its Gas System Reliability Surcharge. The Kansas Corporation Commission approved the application in September 2026, and the new rates became effective in October.
Texas Gas Service received approval for a $36.9 million revenue increase under its Gas Reliability Infrastructure Program, effective July 2026. Meanwhile, the Oklahoma Corporation Commission approved Oklahoma Natural Gas' annual rate application in October.
The application included a $28.7 million base rate revenue increase and a $2.6 million energy efficiency incentive. The commission's order has been appealed to the Oklahoma Supreme Court.
OGS Cash Flow and Balance Sheet
Cash and cash equivalents amounted to $7.3 million as of Sept. 30, 2026 compared with $10.6 million as of Dec. 31, 2025.
As of Sept. 30, 2026, total long-term debt, excluding current maturities, rose to $2.70 billion from $2.36 billion as of Dec. 31, 2025.
Cash provided by operating activities totaled $507.8 million during the first nine months of 2026, down 5.2% from $535.8 million in the comparable 2025 period. Capital expenditures were $542.5 million compared with $539.4 million a year ago.
ONE Gas Raises 2026 Earnings Guidance
ONE Gas raised its 2026 adjusted net income guidance to $313-$317 million from the previous range of $310-$314 million.
The company increased its adjusted earnings guidance to $4.95-$5.01 per share from $4.89-$4.95. The Zacks Consensus Estimate for earnings per share (EPS) is pegged at $4.91, which is slightly below the midpoint of the company’s guided range.
OGS continues to expect capital investments, including asset removal costs, of approximately $800 million in 2026, primarily targeting system integrity and replacement projects. Nearly $230 million of the planned investments will support extensions to new customers.
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.
Upcoming Releases
Duke Energy (DUK - Free Report) is scheduled to report third-quarter 2026 results on Nov. 5, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $1.87 per share, which implies year-over-year growth of 3.31%.
DUK’s long-term (three to five years) earnings growth rate is 6.38%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $8.90 billion, which implies a year-over-year improvement of 4.15%.
Evergy (EVRG - Free Report) is set to report third-quarter 2026 results on Nov. 5, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $2.30 per share, which implies year-over-year growth of 13.30%.
EVRG’s long-term earnings growth rate is 9.07%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $1.90 billion, which implies a year-over-year improvement of 4.71%.
PPL Corporation (PPL - Free Report) is scheduled to report third-quarter 2026 results on Nov. 6, before the market opens. The Zacks Consensus Estimate for earnings is pegged at 53 cents per share, which implies year-over-year growth of 10.42%.
PPL’s long-term earnings growth rate is 5.26%. The Zacks Consensus Estimate for third-quarter 2026 sales is pinned at $2.44 billion, which implies a year-over-year improvement of 8.91%.