ONE Gas, Inc. Files Q3 2024 10-Q

TL;DR

ONE Gas Q3 10-Q filed. Financials and ops details out.

AI Summary

ONE Gas, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the natural gas distribution company. Specific financial figures and operational metrics for the third quarter and year-to-date periods are presented.

Why It Matters

This filing provides investors and analysts with the latest financial health and operational performance of ONE Gas, Inc., crucial for understanding the company's trajectory in the natural gas sector.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the financial reporting quarter.)
• 2024-11-05 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• ONE Gas, Inc. (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241105 (date) — Filing date
• Tulsa, OK (location) — Company headquarters

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share OGS New York Stock Exchange
• $1.35 billion — Inc. ONE Gas Credit Agreement ONE Gas' $1.35 billion revolving credit agreement, as amended
• $550 million — egistered unsecured notes consisting of $550 million of 5.10 percent senior notes due April
• $300 million — 10 percent senior notes due April 2029, $300 million of 2.00 percent senior notes due May 20
• $600 million — ercent senior notes due September 2032, $600 million of 4.66 percent senior notes due Februa
• $400 million — cent senior notes due February 2044 and $400 million of 4.50 percent senior notes due Novemb

Filing Documents

• ogs-20240930.htm (10-Q) — 1410KB
• ogs10-qx9302024exhibit311.htm (EX-31.1) — 8KB
• ogs10-qx9302024exhibit312.htm (EX-31.2) — 8KB
• ogs10-qx9302024exhibit321.htm (EX-32.1) — 5KB
• ogs10-qx9302024exhibit322.htm (EX-32.2) — 5KB
• 0001587732-24-000060.txt ( ) — 7677KB
• ogs-20240930.xsd (EX-101.SCH) — 62KB
• ogs-20240930_cal.xml (EX-101.CAL) — 56KB
• ogs-20240930_def.xml (EX-101.DEF) — 404KB
• ogs-20240930_lab.xml (EX-101.LAB) — 777KB
• ogs-20240930_pre.xml (EX-101.PRE) — 511KB
• ogs-20240930_htm.xml (XML) — 1095KB

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 12 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 38 Part II. Other Information 39 Item 1.

Legal Proceedings

Legal Proceedings 39 Item 1A.

Risk Factors

Risk Factors 39 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39 Item 3. Defaults Upon Senior Securities 39 Item 4. Mine Safety Disclosures 39 Item 5. Other Information 39 Item 6. Exhibits 39 Signature 42 As used in this Quarterly Report, references to "we," "our," "us" or the "Company" refer to ONE Gas, Inc., an Oklahoma corporation, and its predecessors and subsidiaries, unless the context indicates otherwise. The statements in this Quarterly Report that are not historical information, including statements concerning plans and objectives of management for future operations, economic performance or related assumptions, are forward-looking statements. Forward-looking statements may include words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled," "likely" and other words and terms of similar meaning. Although we believe that our expectations regarding future events are based on reasonable assumptions, we can give no assurance that such expectations and assumptions will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements are described under Part I, Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations, "Forward-Looking Statements," and Part II, Item 1A, "Risk Factors" in this Quarterly Report and under Part I, Item IA, "Risk Factors," in our Annual Report. 3 AVAILABLE INFORMATION We make available, free of charge, on our website (www.onegas.com) our Annual Reports, Quarterly Reports, Current Reports on Form 8-K, amendments to those reports filed or furnished to the SEC pursuant to Section 13(a) or 15(d) of the Exchange Act and reports of holdings of our securities filed by our officers and directors under Section 16 of the Exchange Act. Such materials are

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS ONE Gas, Inc. CONSOLIDATED STATEMENTS OF INCOME Three Months Ended Nine Months Ended September 30, September 30, (Unaudited) 2024 2023 2024 2023 ( Thousands of dollars, except per share amounts ) Total revenues $ 340,398 $ 335,816 $ 1,452,855 $ 1,766,073 Cost of natural gas 59,632 70,910 514,593 866,950 Operating expenses Operations and maintenance 130,743 121,623 385,258 366,921 Depreciation and amortization 72,126 68,435 221,247 207,246 General taxes 18,448 17,645 57,023 54,501 Total operating expenses 221,317 207,703 663,528 628,668 Operating income 59,449 57,203 274,734 270,455 Other income, net 2,982 55 7,322 4,810 Interest expense, net ( 39,148 ) ( 27,961 ) ( 107,475 ) ( 85,561 ) Income before income taxes 23,283 29,297 174,581 189,704 Income taxes ( 4,015 ) ( 4,108 ) ( 28,753 ) ( 29,205 ) Net income $ 19,268 $ 25,189 $ 145,828 $ 160,499 Earnings per share Basic $ 0.34 $ 0.45 $ 2.57 $ 2.89 Diluted $ 0.34 $ 0.45 $ 2.56 $ 2.87 Average shares ( thousands ) Basic 56,825 55,624 56,768 55,576 Diluted 57,093 55,975 56,906 55,897 Dividends declared per share of stock $ 0.66 $ 0.65 $ 1.98 $ 1.95 See accompanying Notes to Consolidated Financial Statements. 6 Table of Contents ONE Gas, Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended Nine Months Ended September 30, September 30, (Unaudited) 2024 2023 2024 2023 ( Thousands of dollars ) Net income $ 19,268 $ 25,189 $ 145,828 $ 160,499 Other comprehensive income, net of tax Change in pension and other postemployment benefit plan liability, net of tax of $ — , $ — , $ — , and $ — , respectively — ( 1 ) ( 1 ) ( 1 ) Net unrealized holding gains (losses) on available-for-sale securities, net of tax of $( 68 ), $ — , $( 67 ), and $ — , respectively 255 — 254 — Total other comprehensive income (loss), net of tax 255 ( 1 ) 253 ( 1 ) Comprehensive income $ 19,523 $ 25,188 $ 146,081 $ 160,498 See accompanying

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation - Our accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. These statements also have been prepared in accordance with GAAP and reflect all adjustments that, in our opinion, are necessary for a fair statement of the results for the interim periods presented. All such adjustments are of a normal recurring nature. The 2023 year-end consolidated balance sheet data was derived from audited consolidated financial statements but does not include all disclosures required by GAAP. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes in our Annual Report. Our significant accounting policies are described in Note 1 of our Notes to Consolidated Financial Statements in our Annual Report. The preparation of these financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts and disclosures in the financial statements. Although management believes these estimates are reasonable, actual results could differ materially from these estimates. Due to the seasonal nature of our business, the results of operations for the nine months ended September 30, 2024, are not necessarily indicative of the results that may be expected for a 12-month period. Organization and Nature of Operations - We provide natural gas distribution services to approximately 2.3 million customers in Oklahoma, Kansas and Texas through our three divisions, Oklahoma Natural Gas, Kansas Gas Service and Texas Gas Service, respectively. We primarily serve residential, commercial and transportation customers in all three states. Segments - We operate in one reportable business segment: regulated public utilities that deliver natural gas primarily to residential, commercial and trans

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