ONE Gas (OGS) Q1 2026 earnings summary

Executive summary

• Adjusted net income for Q1 2026 was $133.4 million ($2.11 per diluted share), up from $120.1 million ($1.99) year-over-year, while GAAP net income was $128.7 million ($2.04 per diluted share), up from $119.4 million ($1.98).

• Performance remained strong despite a historically warm winter, supported by disciplined execution, regulatory strategy, and weather normalization mechanisms.

• Customer affordability and operational efficiency were priorities, with a 20% increase in storage capacity saving $98 million versus spot gas prices.

• Safety performance was recognized with the AGA Safety Achievement Award for the ninth consecutive year.

• The board declared a quarterly dividend of $0.68 per share, annualized at $2.72.

Financial highlights

• Q1 2026 revenues were $831.7 million, down from $935.2 million in Q1 2025, primarily due to lower natural gas sales and transportation revenues.

• Operating income for Q1 2026 was $189.6 million, up from $180.5 million, mainly due to $27.3 million from new rates.

• Cost of natural gas decreased to $393.5 million from $512.5 million year-over-year.

• Operating expenses (excluding gas cost) increased 7% to $171.8 million, with O&M expenses up 8.6% year-over-year.

• Capital expenditures and asset removal costs were $169.6 million, down from $177.7 million in Q1 2025.

Outlook and guidance

• 2026 adjusted net income guidance affirmed at $306–$314 million and adjusted EPS of $4.83–$4.95.

• Capital investments for 2026 projected at $800 million, with $230 million for new customer extensions.

• Long-term GAAP and adjusted net income growth targeted at 7–9%, with EPS growth of 5–7%.

• Regulatory filings in Oklahoma and Texas seek base rate increases and infrastructure cost recovery.

• Storage-related cash flow impacts expected to normalize through the year.