eps diluted
3.15–3.35 $per share
FY 2018
official guidance
ONE GAS, INC.
Last · NYSE$74.05-0.49 (-0.66%)close · yahoo · 10h ago
Market cap$4.65B62.9M sh
P/E · TTM15.9fwd 14.7 · eps 4.65
Beta0.63vs S&P 500
Div yield3.65%annual · TTM
52w range
$70.37$90.78
Volume708.3Ksession
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Attractive regulated growth and dividend profile, but near-term earnings timing, regulatory execution, and financing uncertainty argue against adding aggressively.
ONE Gas remains a stable regulated utility, but this was a mixed quarter:
Q3 net income fell to $16.3 million, or $0.31 per diluted share, from $18.8 million and $0.36 year over year. The company maintained 2018 EPS guidance of $3.15-$3.35 and capital spending of $375-$390 million, while the pending Kansas rate case offers upside but its outcome and refinancing costs remain unresolved.
Themes
- Rate Case
- Tax Reform
- Capital Expenditures
- Dividend Growth
- Fort Riley
- Customer Growth
Near term
Oklahoma’s performance-based rate case is expected to receive a final order by year-end 2018.
Kansas rate proceedings could produce new rates in the first quarter of 2019; the company requested a $42.7 million net increase and approximately $31 million of operating-income benefit.
The remaining $0.03 per-share tax-reform timing reversal is expected in Q4, completing the known earnings drag from revenue deferrals.
The $300 million bond maturity due in January 2019 has not yet been refinanced; management has flexibility through its revolver, but market rates could pressure interest expense.
Longer term
System investment remains substantial, with approximately 70% of planned capital expenditures directed to system integrity and replacement projects.
Management targets 7%-9% average annual dividend growth from 2017 through 2022, with a 55%-65% payout ratio.
The estimated 2018 average rate base is approximately $3.36 billion versus $3.0 billion of authorized rate base, creating potential earnings support as investments enter future rate proceedings.
Fort Riley expands the regulated asset base modestly through a 50-year operating contract, but the disclosed $5.8 million rate-base addition is immaterial relative to the company’s total rate base.
Red flags
The Kansas rate-case request assumes a 10% ROE and 62.2% common-equity ratio; every 25-basis-point change in approved ROE would alter operating income by approximately $2.2 million, highlighting meaningful regulatory risk.
Customer growth was only 0.4% in Q3 versus 0.7% in 2017, although management characterized year-to-date growth by state as broadly consistent with recent years.
Operating costs rose to $110.5 million from $104.8 million, driven by employee-related costs and bad debt expense; the analyst’s question about efficiency received no quantified improvement commitment.
Management did not provide a firm refinancing structure or timing for the January maturity, leaving exposure to higher financing costs.
Forward outlook
revenue
375–390 $million
FY 2018
official guidance
eps diluted
0.46 $per share
FY 2018
official guidance
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
9:00 PM UTC+1
Period
Sep 2026
Est. EPS
$0.48
Est. revenue
395.5M
Earnings transcripts
- Motley Fool
ONE Gas (OGS) Q2 2026 Earnings Call Transcript
ONE GAS, INC.
- Issuer IR
Q4 2019 earnings call transcript
ONE GAS, INC.
- Issuer webcast
Q4 2019 webcast
ONE GAS, INC.
- Issuer IR
Q1 2019 earnings call transcript
ONE GAS, INC.
- Issuer IR
Q1 2018 earnings call transcript
ONE GAS, INC.
- Issuer IR
Q3 2020 earnings call transcript
ONE GAS, INC.
Documents
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