ONE Gas Increases Quarterly Dividend; Narrows 2022 Financial Guidance

Rhea-AI Summary

ONE Gas (NYSE: OGS) announced a dividend increase of 3 cents per share for Q1 2023, bringing the total to 65 cents per share, resulting in an annualized dividend of $2.60. The dividend is payable on March 10, 2023, to shareholders of record by February 24, 2023. The company forecasts an annual dividend growth of 4% to 6% until 2027, with a target payout ratio of 55%-65% of net income. Additionally, ONE Gas narrowed its 2022 earnings guidance to a range of $4.06 to $4.10 per diluted share, translating to net income expectations between $221 million and $223 million, alongside roughly $655 million in capital investments.

Positive

• Dividend increased by 3 cents to 65 cents per share, annualized at $2.60.
• Projected annual dividend growth of 4%-6% through 2027.
• Narrowed earnings guidance for 2022 to $4.06-$4.10 per diluted share.

Negative

• The financial guidance suggests a modest outlook for earnings.
• Potential fluctuations in net income may affect future dividends.

TULSA, Okla., Jan. 24, 2023 /PRNewswire/ -- The board of directors of ONE Gas, Inc. (NYSE: OGS) today increased the dividend for the first quarter 2023 by 3 cents per share to 65 cents per share, resulting in an annualized dividend of $2.60 per share.

The dividend is payable March 10, 2023, to shareholders of record at the close of business Feb. 24, 2023.

The company expects an average annual dividend increase of 4% to 6% through 2027, with a target dividend payout ratio of 55% to 65% of net income, subject to its board of directors' approval.

2022 FINANCIAL GUIDANCE

The Company also narrowed its 2022 financial guidance to earnings of $4.06 to $4.10 per diluted share from the previous range of $4.00 to $4.16 per diluted share. Net income is now expected to be in the range of $221 million to $223 million. Capital investments are expected to be approximately $655 million.

ONE Gas, Inc. (NYSE: OGS) is a 100-percent regulated natural gas utility, and trades on the New York Stock Exchange under the symbol "OGS." ONE Gas is included in the S&P MidCap 400 Index and is one of the largest natural gas utilities in the United States. 

Headquartered in Tulsa, Oklahoma, ONE Gas provides a reliable and affordable energy choice to more than 2.3 million customers in Kansas, Oklahoma and Texas. Its divisions include Kansas Gas Service, the largest natural gas distributor in Kansas; Oklahoma Natural Gas, the largest in Oklahoma; and Texas Gas Service, the third largest in Texas, in terms of customers.

For more information and the latest news about ONE Gas, visit onegas.com and follow its social channels: @ONEGas, Facebook, LinkedIn and YouTube.

Analyst Contact:	Brandon Lohse
	918-947-7472
Media Contact:	Leah Harper
	918-947-7123

 

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SOURCE ONE Gas, Inc.

FAQ

What is the new dividend amount for ONE Gas (OGS) in 2023?

The new dividend amount is 65 cents per share for Q1 2023.

When is the dividend payment date for ONE Gas (OGS)?

The dividend will be paid on March 10, 2023.

What is the forecasted annual dividend growth for ONE Gas (OGS)?

ONE Gas expects an annual dividend growth of 4% to 6% through 2027.

What is the earnings guidance for ONE Gas (OGS) in 2022?

The earnings guidance for 2022 is narrowed to $4.06 to $4.10 per diluted share.