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ONE Gas' (OGS) Q1 Earnings & Revenues Surpass Estimates

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ONE Gas, Inc. (OGS - Free Report) recorded first-quarter 2019 operating earnings of $1.76 per share, beating the Zacks Consensus Estimate of $1.73 by 1.7%.

The reported earnings improved 2.3% year over year driven by new rates, colder-than-normal weather and customer growth.

Total Revenues

The company reported total revenues of $661 million in the first quarter, beating the Zacks Consensus Estimate of $625 million by nearly 5.7%. Also, the figure was ahead of the prior-year revenues of $638.5 million by 3.5%.

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 6.7% from the year-ago period to $168.3 million, owing to increase in operating and maintenance expenses.

Operating income in the reported quarter declined 2.1% year over year to $168.3 million.

The company incurred interest expenses of $15.8 million, increasing 27.4% from the year-ago period.

Financial Highlights

On Mar 31, 2019, ONE Gas had cash and cash equivalents of $19.6 million compared with $21.3 million at 2018-end.

Long-term debt (excluding current maturities) was $1,285.6 million as of Mar 31, 2019, increasing marginally from the Dec 31, 2018 level of $1,285.5 million.

The company’s cash flow from operating activities in first-quarter 2019 was $122.3 million, decreasing 45.2% from $223.3 million recorded in the prior-year period.

Guidance

ONE Gas reiterated its guidance for 2019 net income in the range of $174-$190 million and earnings per share within $3.27-$3.57. The midpoint of management’s 2019 EPS guidance is $3.42, which is lower than the current Zacks Consensus Estimate of $3.45 per share for the period.

The company now expects 2019 capital expenditure to be $450 million, of which 70% is directed toward system integrity and replacement projects.

Upcoming Releases

MDU Resources Group Inc. (MDU - Free Report) is expected to release first-quarter 2019 results on May 1. The Zacks Consensus Estimate for the quarter is pegged at 24 cents per share.

National Fuel Gas Company (NFG - Free Report) is expected to release second-quarter fiscal 2019 results on May 3. The Zacks Consensus Estimate for the quarter to be reported is pegged at $1.11 per share.

Atmos Energy Corporation (ATO - Free Report) is expected to release second-quarter fiscal 2019 results on May 7. The Zacks Consensus Estimate for the quarter is pegged at $1.66 per share.
 
Zacks Rank

ONE Gas currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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