ONE Gas (OGS) Q4 2024 earnings summary

Executive summary

• Achieved full-year EPS of $3.91, surpassing guidance midpoint, with 11 consecutive years of meeting or exceeding guidance since 2014 separation.

• Q4 2024 net income was $77 million ($1.34 per diluted share), up from $70.7 million ($1.27) in Q4 2023; full-year net income was $223 million ($3.91), down from $331 million ($4.14) in 2023.

• Robust customer growth with 23,000 new meters set in 2024, driven by housing demand and economic development in Kansas, Oklahoma, and Texas.

• Continued system modernization, completing the Bare Steel Service line replacement in Kansas and reducing leak-related emissions by over 50% since 2005.

• Full-year 2024 capital expenditures and asset removal costs totaled $762 million, up from $729 million in 2023.

Financial highlights

• Q4 2024 GAAP net income was $77 million ($1.34 per diluted share), up from $71 million ($1.27) in Q4 2023.

• Full-year GAAP net income was $223 million ($3.91 per diluted share), compared to $331 million ($4.14) in 2023.

• Q4 2024 total revenues were $630.7 million, up from $605.9 million in Q4 2023; full-year revenues were $2,083.6 million, down from $2,372 million in 2023.

• O&M expenses rose 4% for the year, with a 2.4% increase in Q4 year-over-year.

• Cost of natural gas for 2024 was $778.3 million, down from $1,134.5 million in 2023.

Outlook and guidance

• 2025 guidance: net income of $254–$261 million, EPS of $4.20–$4.32, and capital expenditures/asset removal costs of ~$750 million.

• 2025 capital investments include $180 million for customer extensions.

• No additional Federal Reserve rate cuts assumed in 2025 guidance.

• Texas Gas Service filed for $23.6 million in rate increases effective June 2025.

• Expect similar pace of residential growth and continued investment in system safety and reliability.