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ONE Gas (OGS) Beats on Q2 Earnings, Raises 2019 Guidance

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ONE Gas, Inc. (OGS - Free Report) recorded second-quarter 2019 operating earnings of 46 cents per share, beating the Zacks Consensus Estimate of 41 cents by 12.2%.

Moreover, the reported earnings improved 17.9% year over year driven by new rates, and marginally lower operation and maintenance expenses.

Total Revenues

The company reported total revenues of $290.6 million in the second quarter, lagging the Zacks Consensus Estimate of $294 million by nearly 1.15% and declining from the prior-year figure of $292.5 million by 0.7%.

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

Quarterly Highlights

Total operating expenses in the reported quarter increased 2.4% from the year-ago period to $161.1 million.

Operating income in the reported quarter increased 14.1% year over year to $46.9 million.

The company incurred interest expenses of $15.4 million, increasing 28.3% from the year-ago period.

Financial Highlights

On Jun 30, 2019, ONE Gas had cash and cash equivalents of $11.1 million compared with $21.3 million at 2018-end.

Long-term debt (excluding current maturities) was $1,285.8 million as of Jun 30, 2019, increasing marginally from the Dec 31, 2018 level of $1,285.5 million.

The company’s cash flow from operating activities in the first half of 2019 was $241.1 million compared with $399.9 million in the prior-year period.

Guidance

ONE Gas upwardly revised its guidance for 2019 net income to the range of $180-$190 million from $174-$190 million. Earnings per share guidance was revised upward to the band of $3.39-$3.57 from $3.27-$3.57 per share. The midpoint of management’s 2019 EPS guidance is $3.48, higher than the current Zacks Consensus Estimate of $3.45 for the period.

The company reiterated its 2019 capital expenditure view of $450 million. Out of the projected expenditure, 70% is directed toward system integrity and replacement projects.

Upcoming Releases

MDU Resources Group Inc. (MDU - Free Report) is expected to release second-quarter 2019 results on Jul 31. The Zacks Consensus Estimate for the quarter is pegged at 25 cents.

National Fuel Gas Company (NFG - Free Report) is expected to release third-quarter fiscal 2019 results on Aug 2. The Zacks Consensus Estimate for the quarter to be reported is pegged at 64 cents.

Atmos Energy Corporation (ATO - Free Report) is expected to release third-quarter fiscal 2019 results on Aug 7. The Zacks Consensus Estimate for the quarter is pegged at 69 cents.
 
Zacks Rank

ONE Gas currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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