ONE Gas Announces Third Quarter 2024 Financial Results; Increases 2024 Financial Guidance
ONE Gas (NYSE: OGS) reported Q3 2024 net income of $19.3 million ($0.34 per diluted share), down from $25.2 million ($0.45 per share) in Q3 2023. Year-to-date net income was $145.8 million ($2.56 per share), compared to $160.5 million ($2.87 per share) last year. The company increased its 2024 EPS guidance to $3.85-$3.95 from $3.70-$4.00 previously.
Operating income rose to $59.5 million in Q3 2024 from $57.2 million in Q3 2023, primarily due to a $17.5 million increase from new rates. The company expanded its credit agreement and commercial paper program capacity to $1.35 billion each and issued an additional $250 million in senior notes.
ONE Gas (NYSE: OGS) ha riportato un reddito netto nel terzo trimestre del 2024 di $19,3 milioni ($0,34 per azione diluita), in calo rispetto ai $25,2 milioni ($0,45 per azione) nel terzo trimestre del 2023. Il reddito netto dall'inizio dell'anno è stato di $145,8 milioni ($2,56 per azione), rispetto ai $160,5 milioni ($2,87 per azione) dello scorso anno. L'azienda ha aumentato la sua stima di EPS per il 2024 a $3,85-$3,95, rispetto ai $3,70-$4,00 precedentemente indicati.
Il reddito operativo è aumentato a $59,5 milioni nel terzo trimestre del 2024, rispetto ai $57,2 milioni nel terzo trimestre del 2023, principalmente grazie a un incremento di $17,5 milioni dovuto a nuove tariffe. L'azienda ha ampliato la sua linea di credito e la capacità del programma di carta commerciale a $1,35 miliardi ciascuno e ha emesso ulteriori $250 milioni in note senior.
ONE Gas (NYSE: OGS) reportó un ingreso neto de $19.3 millones ($0.34 por acción diluida) en el tercer trimestre de 2024, una caída desde los $25.2 millones ($0.45 por acción) en el tercer trimestre de 2023. El ingreso neto acumulado hasta la fecha fue de $145.8 millones ($2.56 por acción), en comparación con los $160.5 millones ($2.87 por acción) del año pasado. La compañía aumentó su guía de EPS para 2024 a $3.85-$3.95 desde $3.70-$4.00 anteriormente.
El ingreso operativo aumentó a $59.5 millones en el tercer trimestre de 2024 desde los $57.2 millones en el tercer trimestre de 2023, principalmente debido a un aumento de $17.5 millones por nuevas tarifas. La empresa amplió su acuerdo de crédito y la capacidad de su programa de papel comercial a $1.35 mil millones cada uno y emitió $250 millones adicionales en notas senior.
ONE Gas (NYSE: OGS)는 2024년 3분기 순이익이 1,930만 달러(희석 주당 0.34 달러)로, 2023년 3분기 2,520만 달러(주당 0.45 달러)에서 감소했다고 보고했습니다. 올해 누적 순이익은 1억 4,580만 달러(주당 2.56 달러)로, 작년의 1억 6,050만 달러(주당 2.87 달러)와 비교됩니다. 회사는 2024년 주당순이익(EPS) 전망을 3.70~4.00 달러에서 3.85~3.95 달러로 상향 조정했습니다.
운영 이익은 2024년 3분기에 5,950만 달러로, 2023년 3분기 5,720만 달러에서 증가했으며, 이는 주로 새로운 요금에서 1,750만 달러의 증가로 인한 것입니다. 회사는 신용 계약과 상업 어음 프로그램의 용량을 각각 13억 5천만 달러로 확대하고 추가로 2억 5천만 달러의 선순위를 발행했습니다.
ONE Gas (NYSE: OGS) a déclaré un revenu net de 19,3 millions de dollars (0,34 $ par action diluée) au troisième trimestre de 2024, en baisse par rapport à 25,2 millions de dollars (0,45 $ par action) au troisième trimestre de 2023. Le revenu net depuis le début de l'année s'élevait à 145,8 millions de dollars (2,56 $ par action), contre 160,5 millions de dollars (2,87 $ par action) l'an dernier. L'entreprise a relevé sa prévision de BPA pour 2024 à 3,85-3,95 $ contre 3,70-4,00 $ précédemment.
Le revenu d'exploitation a augmenté à 59,5 millions de dollars au troisième trimestre 2024, contre 57,2 millions de dollars au troisième trimestre 2023, principalement grâce à une augmentation de 17,5 millions de dollars due aux nouveaux tarifs. L'entreprise a étendu son accord de crédit et sa capacité de programme de papier commercial à 1,35 milliard de dollars chacun et a émis 250 millions de dollars supplémentaires en obligations senior.
ONE Gas (NYSE: OGS) berichtete im dritten Quartal 2024 einen Nettogewinn von 19,3 Millionen USD (0,34 USD pro verwässerter Aktie), zurück von 25,2 Millionen USD (0,45 USD pro Aktie) im dritten Quartal 2023. Der Nettogewinn seit Jahresbeginn betrug 145,8 Millionen USD (2,56 USD pro Aktie), verglichen mit 160,5 Millionen USD (2,87 USD pro Aktie) im vergangenen Jahr. Das Unternehmen erhöhte seine EPS-Prognose für 2024 auf 3,85-3,95 USD von zuvor 3,70-4,00 USD.
Der Betriebsgewinn stieg im dritten Quartal 2024 auf 59,5 Millionen USD, verglichen mit 57,2 Millionen USD im dritten Quartal 2023, hauptsächlich aufgrund eines Anstiegs von 17,5 Millionen USD durch neue Tarife. Das Unternehmen erweiterte seine Kreditvereinbarung und die Kapazität seines Commercial Paper-Programms jeweils auf 1,35 Milliarden USD und emittierte zusätzlich 250 Millionen USD in vorrangigen Anleihen.
- Increased 2024 EPS guidance midpoint to $3.90
- Operating income increased to $59.5M from $57.2M YoY
- Secured rate increases: $31.4M in Oklahoma, $70M in Kansas, $8.5M in Texas West-North
- Credit facility and commercial paper program expanded to $1.35B each
- Q3 net income declined 23.4% YoY to $19.3M
- Year-to-date net income decreased 9.2% to $145.8M
- Higher interest expenses due to debt refinancing at higher rates
- Increased operating costs from employee-related expenses and depreciation
Insights
ONE Gas's Q3 2024 results show mixed performance with notable developments. While net income declined to
The increased operating income of
The capital expenditure increase to
Declares Fourth Quarter Dividend
TULSA, Okla., Nov. 4, 2024 /PRNewswire/ -- ONE Gas, Inc. (NYSE: OGS) today announced its third quarter financial results, increased the midpoint of its 2024 EPS guidance and declared its quarterly dividend.
"Through company-wide effort and focused execution, we have raised and narrowed our 2024 financial guidance, all while maintaining a healthy balance sheet," said Robert S. McAnnally, president and chief executive officer. "As we approach the end of the year, we are poised to deliver strong financial results, serve our customers and strategically position the company for the opportunities that lie ahead."
THIRD QUARTER 2024 FINANCIAL RESULTS & HIGHLIGHTS
- Third quarter net income was
, or$19.3 million per diluted share, compared with$0.34 , or$25.2 million per diluted share, in the third quarter 2023;$0.45 - Year-to-date net income was
, or$145.8 million per diluted share, compared with$2.56 , or$160.5 million per diluted share, in the same period last year;$2.87 - The Company raised and tightened 2024 diluted earnings per share guidance to a range of
to$3.85 , from a previous range of$3.95 to$3.70 ;$4.00 - In October, the Company entered into agreements to increase the capacity of the ONE Gas Credit Agreement and the commercial paper program each to
from$1.35 billion ;$1.27 5 billion - On Sept. 27, 2024, the parties to Texas Gas Service's Central-Gulf rate case filed an uncontested settlement agreement for an increase of
, based on a 9.7 percent return on equity and a 59.6 percent common equity ratio, subject to approval;$19.3 million - In August, the Company reopened its 5.10 percent senior notes of
to issue an additional$300 million at an effective rate of 4.87 percent, aggregating its senior notes due April 2029 to$250 million ; and$550 million - The board of directors declared a quarterly dividend of
per share ($0.66 annualized), payable on Dec. 4, 2024, to shareholders of record at the close of business on Nov. 19, 2024.$2.64
THIRD QUARTER 2024 FINANCIAL PERFORMANCE
ONE Gas reported operating income of
The increase was partially offset by:
- an increase of
in depreciation and amortization expense from additional capital investment;$3.7 million - an increase of
in employee-related costs, due primarily to planned investments in the Company's workforce and ongoing in-sourcing efforts; and$6.1 million - an increase of
in outside services.$2.0 million
Excluding interest related to KGSS-I securitized bonds, net interest expense increased
Income tax expense includes a credit for amortization of the regulatory liability associated with excess deferred income taxes (EDIT) of
Capital expenditures and asset removal costs were
YEAR-TO-DATE 2024 FINANCIAL PERFORMANCE
Operating income for the nine-month 2024 period was
- an increase of
in revenue from new rates; and$43.3 million - an increase of
in residential sales due primarily to net customer growth in$5.1 million Oklahoma andTexas .
These increases were offset partially by:
- an increase of
of employee-related costs due primarily to planned investments in the Company's workforce and ongoing in-sourcing efforts;$16.5 million - an increase of
in depreciation and amortization expense from additional capital investment;$14.0 million - an increase of
due to ad valorem taxes;$2.1 million - an increase of
due to insurance expense;$1.0 million - an increase of
in fleet costs; and$1.9 million - a decrease of
in revenue due to lower sales volumes, largely offset by the impact of weather normalization mechanisms.$5.9 million
Excluding interest related to KGSS-I securitized bonds, net interest expense increased
Income tax expense includes a credit for amortization of the regulatory liability associated with EDIT of
Capital expenditures and asset removal costs were
REGULATORY ACTIVITIES UPDATE
In February 2024, Oklahoma Natural Gas filed its annual Performance-Based Rate Change application for the test year ended December 2023. The filing included a requested
In March 2024, Kansas Gas Service submitted an application to the Kansas Corporation Commission (KCC) requesting an increase to its base rates reflecting investments in its natural gas distribution system. On Oct. 3, 2024, the KCC issued an order approving the parties' unanimous settlement agreement and new rates became effective on Nov. 1, 2024. Kansas Gas Service's net base rates will increase by
In March 2024, Texas Gas Service made a Gas Reliability Infrastructure Program (GRIP) filing in the West-North service area, requesting an
In June 2024, Texas Gas Service filed a rate case in the Central-Gulf service area, requesting a
In
INCOME TAX UPDATE
In 2024, the Internal Revenue Service issued Revenue Procedure 2024-15, which allows for the deferral of income taxes on securitization bond proceeds received from a qualifying state financing entity. In 2022, Oklahoma Natural Gas received
2024 FINANCIAL GUIDANCE INCREASED
The Company raised and narrowed its 2024 financial guidance, with net income expected to be in the range of
Capital expenditures, including asset removal costs, are still expected to be approximately
EARNINGS CONFERENCE CALL AND WEBCAST
The ONE Gas executive management team will host a conference call on Tuesday, Nov. 5, 2024, at 11 a.m. Eastern Standard Time (10 a.m. Central Standard Time). The call also will be carried live on the ONE Gas website.
To participate in the telephone conference call, dial 833-470-1428, passcode 002088, or log on to www.onegas.com/investors and select Events and Presentations.
If you are unable to participate in the conference call or the webcast, a replay will be available on the ONE Gas website, www.onegas.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 866-813-9403, passcode 631642.
ONE Gas, Inc. (NYSE: OGS) is a
Headquartered in
For more information and the latest news about ONE Gas, visit onegas.com and follow its social channels: @ONEGas, Facebook, LinkedIn and YouTube.
Some of the statements contained and incorporated in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The forward-looking statements relate to our anticipated financial performance, liquidity, management's plans and objectives for our future operations, our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled," "likely," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements, which are applicable only as of the date of this news release. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, costs, liquidity, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:
- our ability to recover costs, income taxes and amounts equivalent to the cost of property, plant and equipment, regulatory assets and our allowed rate of return in our regulated rates or other recovery mechanisms;
- cyber-attacks, which, according to experts, continue to increase in volume and sophistication, or breaches of technology systems that could disrupt our operations or result in the loss or exposure of confidential or sensitive customer, employee, vendor, counterparty, or Company information; further, increased remote working arrangements have required enhancements and modifications to our information technology infrastructure (e.g. Internet, Virtual Private Network, remote collaboration systems, etc.), and any failures of the technologies, including third-party service providers, that facilitate working remotely could limit our ability to conduct ordinary operations or expose us to increased risk or effect of an attack;
- our ability to manage our operations and maintenance costs;
- changes in regulation of natural gas distribution services, particularly those in
Oklahoma ,Kansas andTexas ; - the economic climate and, particularly, its effect on the natural gas requirements of our residential and commercial customers;
- the length and severity of a pandemic or other health crisis which could significantly disrupt or prevent us from operating our business in the ordinary course for an extended period;
- competition from alternative forms of energy, including, but not limited to, electricity, solar power, wind power, geothermal energy and biofuels;
- adverse weather conditions and variations in weather, including seasonal effects on demand and/or supply, the occurrence of severe storms in the territories in which we operate, and climate change, and the related effects on supply, demand, and costs;
- indebtedness could make us more vulnerable to general adverse economic and industry conditions, limit our ability to borrow additional funds and/or place us at competitive disadvantage compared with competitors;
- our ability to secure reliable, competitively priced and flexible natural gas transportation and supply, including decisions by natural gas producers to reduce production or shut-in producing natural gas wells and expiration of existing supply and transportation and storage arrangements that are not replaced with contracts with similar terms and pricing;
- our ability to complete necessary or desirable expansion or infrastructure development projects, which may delay or prevent us from serving our customers or expanding our business;
- operational and mechanical hazards or interruptions;
- adverse labor relations;
- the effectiveness of our strategies to reduce earnings lag, revenue protection strategies and risk mitigation strategies, which may be affected by risks beyond our control such as commodity price volatility, counterparty performance or creditworthiness and interest rate risk;
- the capital-intensive nature of our business, and the availability of and access to, in general, funds to meet our debt obligations prior to or when they become due and to fund our operations and capital expenditures, either through (i) cash on hand, (ii) operating cash flow, or (iii) access to the capital markets and other sources of liquidity;
- our ability to obtain capital on commercially reasonable terms, or on terms acceptable to us, or at all;
- limitations on our operating flexibility, earnings and cash flows due to restrictions in our financing arrangements;
- cross-default provisions in our borrowing arrangements, which may lead to our inability to satisfy all of our outstanding obligations in the event of a default on our part;
- changes in the financial markets during the periods covered by the forward-looking statements, particularly those affecting the availability of capital and our ability to refinance existing debt and fund investments and acquisitions to execute our business strategy;
- actions of rating agencies, including the ratings of debt, general corporate ratings and changes in the rating agencies' ratings criteria;
- changes in inflation and interest rates;
- our ability to recover the costs of natural gas purchased for our customers and any related financing required to support our purchase of natural gas supply;
- impact of potential impairment charges;
- volatility and changes in markets for natural gas and our ability to secure additional and sufficient liquidity on reasonable commercial terms to cover costs associated with such volatility;
- possible loss of local distribution company franchises or other adverse effects caused by the actions of municipalities;
- payment and performance by counterparties and customers as contracted and when due, including our counterparties maintaining ordinary course terms of supply and payments;
- changes in existing or the addition of new environmental, safety, tax, cybersecurity and other laws or regulations to which we and our subsidiaries are subject, including those that may require significant expenditures, significant increases in operating costs or, in the case of noncompliance, substantial fines or penalties;
- the effectiveness of our risk-management policies and procedures, and employees violating our risk-management policies;
- the uncertainty of estimates, including accruals and costs of environmental remediation;
- advances in technology, including technologies that increase efficiency or that improve electricity's competitive position relative to natural gas;
- population growth rates and changes in the demographic patterns of the markets we serve in
Oklahoma ,Kansas andTexas , and economic conditions in these areas; - acts of nature and naturally occurring disasters;
- political unrest and the potential effects of threatened or actual terrorism and war;
- the sufficiency of insurance coverage to cover losses;
- the effects of our strategies to reduce tax payments;
- changes in accounting standards;
- changes in corporate governance standards;
- existence of material weaknesses in our internal controls;
- our ability to comply with all covenants in our indentures and the ONE Gas Credit Agreement, a violation of which, if not cured in a timely manner, could trigger a default of our obligations;
- our ability to attract and retain talented employees, management and directors, and shortage of skilled-labor;
- unexpected increases in the costs of providing health care benefits, along with pension and postemployment health care benefits, as well as declines in the discount rates on, declines in the market value of the debt and equity securities of, and increases in funding requirements for, our defined benefit plans; and
- our ability to successfully complete merger, acquisition or divestiture plans, regulatory or other limitations imposed as a result of a merger, acquisition or divestiture, and the success of the business following a merger, acquisition or divestiture.
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our Annual Report. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
APPENDIX | ||||||||
ONE Gas, Inc. | ||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, | June 30, | |||||||
(Unaudited) | 2024 | 2023 | 2024 | 2023 | ||||
(Thousands of dollars, except per share amounts) | ||||||||
Total revenues | $ 340,398 | $ 335,816 | $ 1,452,855 | $ 1,766,073 | ||||
Cost of natural gas | 59,632 | 70,910 | 514,593 | 866,950 | ||||
Operating expenses | ||||||||
Operations and maintenance | 130,743 | 121,623 | 385,258 | 366,921 | ||||
Depreciation and amortization | 72,126 | 68,435 | 221,247 | 207,246 | ||||
General taxes | 18,448 | 17,645 | 57,023 | 54,501 | ||||
Total operating expenses | 221,317 | 207,703 | 663,528 | 628,668 | ||||
Operating income | 59,449 | 57,203 | 274,734 | 270,455 | ||||
Other income, net | 2,982 | 55 | 7,322 | 4,810 | ||||
Interest expense, net | (39,148) | (27,961) | (107,475) | (85,561) | ||||
Income before income taxes | 23,283 | 29,297 | 174,581 | 189,704 | ||||
Income taxes | (4,015) | (4,108) | (28,753) | (29,205) | ||||
Net income | $ 19,268 | $ 25,189 | $ 145,828 | $ 160,499 | ||||
Earnings per share | ||||||||
Basic | $ 0.34 | $ 0.45 | $ 2.57 | $ 2.89 | ||||
Diluted | $ 0.34 | $ 0.45 | $ 2.56 | $ 2.87 | ||||
Average shares (thousands) | ||||||||
Basic | 56,825 | 55,624 | 56,768 | 55,576 | ||||
Diluted | 57,093 | 55,975 | 56,906 | 55,897 | ||||
Dividends declared per share of stock | $ 0.66 | $ 0.65 | $ 1.98 | $ 1.95 |
APPENDIX | |||
ONE Gas, Inc. | |||
CONSOLIDATED BALANCE SHEETS | |||
September 30, | December 31, | ||
(Unaudited) | 2024 | 2023 | |
Assets | (Thousands of dollars) | ||
Property, plant and equipment | |||
Property, plant and equipment | $ 8,937,502 | $ 8,468,967 | |
Accumulated depreciation and amortization | 2,432,659 | 2,333,755 | |
Net property, plant and equipment | 6,504,843 | 6,135,212 | |
Current assets | |||
Cash and cash equivalents | 18,797 | 18,835 | |
Restricted cash and cash equivalents | 9,961 | 20,552 | |
Total cash, cash equivalents and restricted cash and cash equivalents | 28,758 | 39,387 | |
Accounts receivable, net | 176,248 | 347,864 | |
Materials and supplies | 94,392 | 77,649 | |
Natural gas in storage | 180,795 | 187,097 | |
Regulatory assets | 130,854 | 75,308 | |
Other current assets | 79,455 | 37,899 | |
Total current assets | 690,502 | 765,204 | |
Goodwill and other assets | |||
Regulatory assets | 269,925 | 287,906 | |
Securitized intangible asset, net | 272,510 | 293,619 | |
Goodwill | 157,953 | 157,953 | |
Other assets | 143,692 | 131,100 | |
Total goodwill and other assets | 844,080 | 870,578 | |
Total assets | $ 8,039,425 | $ 7,770,994 |
APPENDIX | |||
ONE Gas, Inc. | |||
CONSOLIDATED BALANCE SHEETS | |||
(Continued) | |||
September 30, | December 31, | ||
(Unaudited) | 2024 | 2023 | |
Equity and Liabilities | (Thousands of dollars) | ||
Equity and long-term debt | |||
Common stock, authorized 250,000,000 shares; issued and outstanding 55,655,255 shares at September 30, 2024; | $ 567 | $ 565 | |
Paid-in capital | 2,042,568 | 2,028,755 | |
Retained earnings | 770,416 | 737,739 | |
Accumulated other comprehensive loss | (929) | (1,182) | |
Total equity | 2,812,622 | 2,765,877 | |
Other long-term debt, excluding current maturities, net of issuance costs | 2,131,448 | 1,877,895 | |
Securitized utility tariff bonds, excluding current maturities, net of issuance costs | 253,434 | 282,506 | |
Total long-term debt, excluding current maturities, net of issuance costs | 2,384,882 | 2,160,401 | |
Total equity and long-term debt | 5,197,504 | 4,926,278 | |
Current liabilities | |||
Current maturities of other long-term debt | 14 | 772,984 | |
Current maturities of securitized utility tariff bonds | 28,956 | 27,430 | |
Notes payable | 951,400 | 88,500 | |
Accounts payable | 146,821 | 278,056 | |
Accrued taxes other than income | 71,829 | 68,793 | |
Regulatory liabilities | 27,652 | 66,901 | |
Customer deposits | 72,537 | 62,187 | |
Other current liabilities | 88,405 | 112,370 | |
Total current liabilities | 1,387,614 | 1,477,221 | |
Deferred credits and other liabilities | |||
Deferred income taxes | 851,378 | 752,068 | |
Regulatory liabilities | 483,287 | 500,478 | |
Employee benefit obligations | 20,030 | 20,265 | |
Other deferred credits | 99,612 | 94,684 | |
Total deferred credits and other liabilities | 1,454,307 | 1,367,495 | |
Commitments and contingencies | |||
Total liabilities and equity | $ 8,039,425 | $ 7,770,994 |
APPENDIX | |||
ONE Gas, Inc. | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
Nine Months Ended | |||
September 30, | |||
(Unaudited) | 2024 | 2023 | |
(Thousands of dollars) | |||
Operating activities | |||
Net income | $ 145,828 | $ 160,499 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 221,247 | 207,246 | |
Deferred income taxes | 82,052 | 14,733 | |
Share-based compensation expense | 10,458 | 9,259 | |
Provision for doubtful accounts | 3,736 | 7,164 | |
Proceeds from government securitization of winter weather event costs | — | 197,366 | |
Changes in assets and liabilities: | |||
Accounts receivable | 167,880 | 369,203 | |
Materials and supplies | (16,743) | (4,045) | |
Natural gas in storage | 6,302 | 64,798 | |
Asset removal costs | (48,135) | (48,779) | |
Accounts payable | (116,385) | (189,663) | |
Accrued taxes other than income | 3,036 | (10,825) | |
Customer deposits | 10,350 | 9,139 | |
Regulatory assets and liabilities - current | (106,051) | 17,884 | |
Regulatory assets and liabilities - noncurrent | 13,374 | 28,667 | |
Other assets and liabilities - current | (67,145) | 7,656 | |
Other assets and liabilities - noncurrent | (4,023) | 2,222 | |
Cash provided by operating activities | 305,781 | 842,524 | |
Investing activities | |||
Capital expenditures | (523,590) | (490,338) | |
Other investing expenditures | (3,760) | (3,194) | |
Other investing receipts | 5,122 | 4,121 | |
Cash used in investing activities | (522,228) | (489,411) | |
Financing activities | |||
Borrowings (repayments) of notes payable, net | 862,900 | (225,050) | |
Issuance of other long-term debt, net of premiums | 253,651 | — | |
Issuance of common stock | 3,368 | 3,176 | |
Repayment of other long-term debt | (773,000) | — | |
Repayment of securitized utility tariff bonds | (27,939) | (20,716) | |
Dividends paid | (112,064) | (108,049) | |
Tax withholdings related to net share settlements of stock compensation | (1,098) | (2,563) | |
Cash provided by (used in) financing activities | 205,818 | (353,202) | |
Change in cash, cash equivalents, restricted cash and restricted cash equivalents | (10,629) | (89) | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 39,387 | 18,127 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ 28,758 | $ 18,038 | |
Supplemental cash flow information: | |||
Cash paid for interest, net of amounts capitalized | $ 110,667 | $ 78,798 | |
Cash paid (received) for income taxes, net | $ (1,232) | $ 17,051 |
APPENDIX
ONE Gas, Inc.
KGSS-I SECURITIZATION
In November 2022, Kansas Gas Service Securitization I, L.L.C. (KGSS-I) issued
Revenues for the three months ended Sept. 30, 2024, include
Revenues for the nine months ended Sept. 30, 2024, include
The following table summarizes the impact of KGSS-I on the consolidated balance sheets, for the periods indicated:
September 30, | December 31, | ||
2024 | 2023 | ||
(Thousands of dollars) | |||
Restricted cash and cash equivalents | $ 9,961 | $ 20,552 | |
Accounts receivable | 4,499 | 5,133 | |
Securitized intangible asset, net | 272,510 | 293,619 | |
Total assets | $ 286,970 | $ 319,304 | |
Current maturities of securitized utility tariff bonds | 28,956 | 27,430 | |
Accounts payable | 222 | 393 | |
Accrued interest | 2,627 | 7,207 | |
Securitized utility tariff bonds, excluding current maturities, net of discounts and issuance costs | 253,434 | 282,506 | |
Equity | 1,731 | 1,768 | |
Total liabilities and equity | $ 286,970 | $ 319,304 |
The following table summarizes the impact of KGSS-I on the consolidated statements of income, for the periods indicated:
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Thousands of dollars) | |||||||
Operating revenues | $ 10,515 | $ 12,014 | $ 33,741 | $ 35,754 | |||
Operating expense | (111) | (113) | (332) | (332) | |||
Amortization expense | (6,429) | (7,489) | (21,109) | (21,758) | |||
Interest income | 199 | 259 | 539 | 560 | |||
Interest expense | (4,138) | (4,548) | (12,731) | (14,101) | |||
Income before income taxes | $ 36 | $ 123 | $ 108 | $ 123 |
APPENDIX | |||||||||||
ONE Gas, Inc. | |||||||||||
INFORMATION AT A GLANCE | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
(Unaudited) | 2024 | 2023 | 2024 | 2023 | |||||||
(Millions of dollars) | |||||||||||
Natural gas sales | $ | 289.8 | $ | 286.0 | $ | 1,290.7 | $ | 1,606.0 | |||
Transportation revenues | $ | 30.6 | $ | 29.6 | $ | 101.3 | $ | 97.6 | |||
Securitization customer charges | $ | 10.5 | $ | 12.0 | $ | 33.7 | $ | 35.8 | |||
Other revenues | $ | 9.5 | $ | 8.2 | $ | 27.2 | $ | 26.7 | |||
Total revenues | $ | 340.4 | $ | 335.8 | $ | 1,452.9 | $ | 1,766.1 | |||
Cost of natural gas | $ | 59.6 | $ | 70.9 | $ | 514.6 | $ | 867.0 | |||
Operating costs | $ | 149.2 | $ | 139.3 | $ | 442.3 | $ | 421.4 | |||
Depreciation and amortization | $ | 72.1 | $ | 68.4 | $ | 221.2 | $ | 207.2 | |||
Operating income | $ | 59.5 | $ | 57.2 | $ | 274.8 | $ | 270.5 | |||
Net income | $ | 19.3 | $ | 25.2 | $ | 145.8 | $ | 160.5 | |||
Capital expenditures and asset removal costs | $ | 197.7 | $ | 184.3 | $ | 571.7 | $ | 539.1 | |||
Volumes (Bcf) | |||||||||||
Natural gas sales | |||||||||||
Residential | 7.5 | 8.6 | 70.4 | 76.0 | |||||||
Commercial and industrial | 4.0 | 4.1 | 26.2 | 28.0 | |||||||
Other | 0.2 | 0.2 | 1.5 | 1.7 | |||||||
Total sales volumes delivered | 11.7 | 12.9 | 98.1 | 105.7 | |||||||
Transportation | 48.1 | 51.3 | 163.7 | 169.1 | |||||||
Total volumes delivered | 59.8 | 64.2 | 261.8 | 274.8 | |||||||
Average number of customers (in thousands) | |||||||||||
Residential | 2,096 | 2,076 | 2,103 | 2,088 | |||||||
Commercial and industrial | 161 | 160 | 163 | 163 | |||||||
Other | 3 | 3 | 3 | 3 | |||||||
Transportation | 12 | 12 | 12 | 12 | |||||||
Total customers | 2,272 | 2,251 | 2,281 | 2,266 | |||||||
Heating Degree Days | |||||||||||
Actual degree days | 8 | 1 | 5,127 | 5,466 | |||||||
Normal degree days | 56 | 56 | 5,944 | 5,960 | |||||||
Percent colder (warmer) than normal weather | * | * | (14) % | (8) % | |||||||
Statistics by State | |||||||||||
Average number of customers (in thousands) | 920 | 912 | 924 | 918 | |||||||
Actual degree days | 0 | 0 | 1,798 | 1,953 | |||||||
Normal degree days | 9 | 8 | 2,039 | 2,028 | |||||||
Percent colder (warmer) than normal weather | * | * | (12) % | (4) % | |||||||
Average number of customers (in thousands) | 647 | 641 | 652 | 649 | |||||||
Actual degree days | 8 | 1 | 2,430 | 2,568 | |||||||
Normal degree days | 45 | 46 | 2,899 | 2,900 | |||||||
Percent colder (warmer) than normal weather | * | * | (16) % | (11) % | |||||||
Average number of customers (in thousands) | 705 | 698 | 705 | 699 | |||||||
Actual degree days | 0 | 0 | 899 | 945 | |||||||
Normal degree days | 2 | 2 | 1,006 | 1,032 | |||||||
Percent colder (warmer) than normal weather | * | * | (11) % | (8) % | |||||||
*Not meaningful |
Analyst Contact: | Erin Dailey 918-947-7411 |
Media Contact: | Leah Harper 918-947-7123 |
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SOURCE ONE Gas, Inc.
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