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ONE Gas (OGS) Q2 Earnings Surpass Estimates, 2018 View Up

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ONE Gas, Inc. (OGS - Free Report) posted second-quarter 2018 operating earnings of 39 cents per share, beating the Zacks Consensus Estimate of 32 cents by 21.9%. Earnings in the second quarter were positive impacted by colder-than-normal weather and new rates in its service territories.

Total Revenues

Total revenues of $292.5 million surpassed the Zacks Consensus Estimate of $275 million by 6.4%. Total revenues improved 4.6% from $279.9 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. Quote

Quarterly Highlights

Total operating expenses in the reported quarter increased 5.8% to $157.3 million from the year-ago quarter, due to increase in operating and maintenance expenses, and general taxes.

In the second quarter, the company served 12,000 more customers than the comparable year-ago period, primarily due to an increase in the residential customer base.

Operating income in the reported quarter was down 15.1% year over year to $41.1 million.

The company incurred interest expenses of $12.0 million, up 6.2% from the year-ago period.

Financial Highlights

On Jun 30, 2018, ONE Gas had cash and cash equivalents of $12.58 million compared with $14.4 million as of Dec 31, 2017.

Long-term debt (excluding current maturities) was $893.7 million as of Jun 30, 2018, down from the Dec 31, 2017 level of $1,193.3 million.

The company’s cash flow from operating activities in the first half of 2018 was $399.9 million, up from $279.3 million recorded in the first half of 2017.

Guidance

ONE Gas now expects its 2018 net income in the range of $167-178 million (versus earlier guided range of $156-$168 million) and earnings per share within $3.15-$3.35 (prior expectation was $2.96-$3.20). The upward revision in guidance takes into consideration the positive impact of colder-than-normal weather and higher transport volumes.

ONE Gas now expects its 2018 capital expenditure in the range of $375-$390 million (versus earlier projection of $370 million), with 70% of it directed toward the system integrity and replacement projects.

Upcoming Releases

Atmos Energy Corporation (ATO - Free Report) is expected to report third-quarter fiscal 2018 earnings on Aug 8, 2018. The Zacks Consensus Estimate is pegged at 68 cents.

Chesapeake Utilities Corporation (CPK - Free Report) is expected to announce second-quarter 2018 results on Aug 9, 2018. The Zacks Consensus Estimate is pegged at 49 cents.

Just Energy (JE - Free Report) is expected to report first-quarter fiscal 2019 earnings on Aug 8, 2018. The Zacks Consensus Estimate stands at 8 cents.

Zacks Rank

ONE Gas currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

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