ONE Gas (OGS) Guidance summary

Opening remarks and agenda

• Conference call introduced with leadership team to discuss 2026 and five-year financial outlook, emphasizing customer growth, system investment, safety, and affordability.

• Forward-looking statements highlighted, with reference to SEC filings for risk factors.

Guidance on key objectives

• 2026 net income projected at $294M–$302M, with EPS of $4.65–$4.77 per diluted share and ~63.4 million shares outstanding; midpoints are $298M and $4.71.

• Five-year net income CAGR expected at 7%–9%, and EPS CAGR at 5%–7% from 2025–2030.

• 2026 capital investments estimated at $800M, with $230M for customer growth/extensions, mainly in Texas and Oklahoma, and an average rate base of $6.3B.

• Dividend growth targeted at 1%–2% CAGR through 2030, with payout ratio to moderate below 50% by plan end, subject to board approval.

• Cash flow from operations before working capital changes estimated at $650M–$700M, funding most dividends and investments.

Market trends and strategic opportunities

• Economic development and strong in-migration in service areas, especially Texas and Oklahoma, are driving residential housing and large-load demand.

• Housing demand and developer activity remain strong, with meter sets above pre-pandemic levels.

• Expansion opportunities supported by energy choice legislation and robust economic growth, with new manufacturing and data center projects.

• Capital expenditures support estimated average rate base growth of 7%–9% per year through 2030.

• Opportunities to support gas-fired power generation for manufacturing, electric grid, and data centers.