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ONE Gas, Inc. OGS reported fourth-quarter 2024 operating earnings per share (EPS) of $1.34, which beat the Zacks Consensus Estimate of $1.33 per share by 0.8%. The figure also came in 5.5% higher than the year-ago quarter’s earnings of $1.27 per share.
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OGS reported 2024 earnings of $3.91 per share compared with $4.14 in 2023, highlighting a year-over-year decrease of 5.6%.
OGS’ Revenues
ONE Gas recorded revenues of $630.7 million, which missed the Zacks Consensus Estimate of $661 million by 4.5%. However, the top line increased 4.1% from $605.9 million in the prior-year quarter.
OGS reported total revenues of $2.08 billion in 2024 compared with $2.37 billion in 2023, reflecting a year-over-year decrease of 12.2%.
ONE Gas, Inc. Price, Consensus and EPS Surprise
ONE Gas, Inc. price-consensus-eps-surprise-chart | ONE Gas, Inc. Quote
Highlights of OGS’ Earnings Release
Total natural gas volumes delivered were 102.4 billion cubic feet, down 6.7% on a year-over-year basis. OGS served 2,277,000 customers, up 0.5% year over year. Despite an increase in total customers, the decline in sales volume was due to lower year-over-year demand from residential, commercial and industrial customers.
Total operating expenses were $242.7 million, up 4.9% year over year. The increase in expenses was due to a rise in operations and maintenance, and depreciation and amortization expenses.
Operating income increased 16% year over year to $124.3 million.
OGS incurred net interest expenses of $39.8 million, up 33.5% on a year-over-year basis.
OGS’ Financial Highlights
As of Dec. 31, 2024, OGS had cash and cash equivalents of $58 million compared with $18.8 million as of Dec. 31, 2023.
Total long-term debt (excluding current maturities) was $2.39 billion as of Dec. 31, 2024 compared with $2.16 billion as of Dec. 31. 2023.
In 2024, cash provided by operating activities was $368.4 million compared with $939.5 million in the year-ago period.
In 2024, capital expenditures were $703.2 million compared with $666.6 million in the year-ago period.
OGS’ 2025 Guidance
OGS expects its 2025 net income in the range of $254-$261 million. Earnings per diluted share are expected in the range of $4.20-$4.32 per share. The Zacks Consensus Estimate for earnings is pegged at $4.26 per share, which lies at the midpoint of the company’s guided range.
OGS expects capital investments, including asset removal costs, of nearly $750 million. Capital investments for extensions to new customers are expected to be nearly $180 million.