In This Article:
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Full Year Earnings Per Diluted Share: $3.91, exceeding the revised guidance midpoint of $3.90.
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Fourth Quarter GAAP Net Income: $77 million or $0.34 per diluted share.
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Full Year GAAP Net Income: $223 million, compared to $231 million in 2023.
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Fourth Quarter Revenue Increase: $24.6 million from new rates.
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O&M Expenses: Increased approximately 4% for the year, with a 2.4% year-over-year increase in the fourth quarter.
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Depreciation and Amortization Expense: $4.7 million higher year-over-year.
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Interest Expense: $10.4 million higher year-over-year in the fourth quarter.
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Commercial Paper Outstanding: $914.6 million with a weighted average interest rate of 4.77% as of December 31.
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Capital Expenditures and Asset Removal Costs: $762 million for the year, compared to $729 million in 2023.
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Authorized Rate Base: Approximately $5.4 billion as of year-end.
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2025 Financial Guidance: Net income of $254 million to $261 million; EPS of $4.20 to $4.32; capital expenditures and asset removal costs of approximately $750 million.
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Dividend Increase: Declared a dividend of $0.67 per share, an increase of $0.01 from the prior quarter.
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New Meters Installed in 2024: Over 23,000 new meters.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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ONE Gas Inc (NYSE:OGS) exceeded the midpoint of its elevated EPS guidance, achieving full-year earnings per diluted share of $3.91.
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The company has consistently met or exceeded the midpoint of its year-ahead EPS guidance for 11 consecutive years.
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Significant strides were made in modernizing and reinforcing the distribution system, including completing the bare steel service line replacement program in Kansas.
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Robust customer growth was reported with 23,000 new meters set across the service territory in 2024.
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The company is exploring opportunities to supply natural gas for power generation, addressing the needs of data centers, industrial applications, and electric providers.
Negative Points
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GAAP net income for the full year decreased to $223 million compared to $231 million in 2023.
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Interest expense in the quarter was $10.4 million higher year-over-year, primarily due to higher rates on long-term debt issuances and higher commercial paper balances.
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Other income net decreased by $4.6 million compared to the same quarter of 2023, primarily due to a decrease in the market value of investments associated with non-qualified employee benefit plans.
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O&M expenses for the year increased by approximately 4%, highlighting cost pressures despite a moderation in the fourth quarter.
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The company did not factor in any rate cuts for 2024 in its forecasts, which could impact financial performance if interest rates do not decrease as hoped.