ONE Gas Announces Third Quarter 2025 Financial Results; Narrows 2025 Financial Guidance

Declares Fourth Quarter Dividend

Analyst call and webcast scheduled tomorrow, November 4 at 11 a.m. EST

TULSA, Okla., Nov. 3, 2025 /PRNewswire/ -- ONE Gas, Inc. (NYSE: OGS) today announced its third quarter financial results, narrowed its 2025 financial guidance and declared its quarterly dividend.

"Our third-quarter performance reflects disciplined execution of our strategy and continued operational efficiency," said Robert S. McAnnally, president and chief executive officer. "The narrowed financial outlook aligns with year-to-date results and reinforces our confidence in delivering full-year guidance. As we approach year-end, we remain focused on sustainable growth, prudent capital deployment and delivering long-term value for our shareholders."

THIRD QUARTER 2025 FINANCIAL RESULTS & HIGHLIGHTS

THIRD QUARTER 2025 FINANCIAL PERFORMANCE

ONE Gas reported operating income of $65.4 million in the third quarter, compared with $59.5 million in the third quarter 2024, which primarily reflects:

The increases were partially offset by:

Excluding interest related to KGSS-I securitized bonds, interest expense, net decreased $3.4 million for the three months ended September 30, 2025, compared to the same period last year, primarily due to lower rates on commercial paper borrowings.

Income tax expense reflects credits for amortization of the regulatory liability associated with excess deferred income taxes (EDIT) of $1.7 million and $1.5 million for the three months ended September 30, 2025 and 2024, respectively.

Capital expenditures and asset removal costs were $207.6 million for the third quarter 2025 compared with $197.7 million in the same period last year, primarily representing expenditures for system integrity and extension of service to new areas.

YEAR-TO-DATE 2025 FINANCIAL PERFORMANCE

Operating income for the nine months ended September 30, 2025, was $317.7 million, compared with $274.6 million in 2024, which primarily reflects:

These increases were partially offset by:

Excluding interest related to KGSS-I securitized bonds, interest expense, net for the nine months ended September 30, 2025 was in line with the same period last year.

Income tax expense includes a credit for amortization of the regulatory liability associated with EDIT of $11.9 million and $13.4 million for the nine months ended September 30, 2025 and 2024, respectively.

Capital expenditures and asset removal costs were $575.4 million for the nine-month 2025 period compared with $571.7 million in the same period last year, primarily representing expenditures for system integrity and extension of service to new areas.

REGULATORY ACTIVITIES UPDATE

In June 2025, Texas Gas Service filed a rate case for all customers in the Central-Gulf, West-North and Rio Grande Valley service areas, requesting a $41.1 million revenue increase and proposing to consolidate all service areas into a single division. Texas Gas Service filed this rate case directly with the cities in each service area, which includes the cities of Austin and El Paso, and the Railroad Commission of Texas (RRC) for the unincorporated areas. This filing is based on a 10.4 percent return on equity and a 59.9 percent common equity ratio. New rates are expected to take effect in the first quarter of 2026.

In April 2025, Texas Gas Service made a Gas Reliability Infrastructure Program filing for all customers in the Rio Grande Valley service area, requesting a $3.2 million increase to be effective in September 2025. In August 2025, the RRC approved an increase of $2.9 million, and new rates became effective in September 2025.

In April 2025, Kansas Gas Service submitted an application to the Kansas Corporation Commission (KCC) requesting an increase of approximately $7.2 million related to its Gas System Reliability Surcharge. In July 2025, the KCC approved a $7.2 million increase effective August 2025.

In February 2025, Oklahoma Natural Gas filed its annual Performance-Based Rate Change application for the test year ended December 2024. The filing included a requested $41.5 million base rate revenue increase, a $2.4 million energy efficiency incentive, and $13.2 million of estimated EDIT to be credited to customers in 2026. A settlement agreement was reached among the parties, which included a $41.1 million base rate revenue increase, a $2.4 million energy efficiency incentive, and $17.9 million of estimated EDIT to be credited to customers beginning in February 2026. Interim rates, subject to refund, were implemented in June 2025. The Oklahoma Corporation Commission issued a final order approving the settlement in July 2025.

2025 FINANCIAL GUIDANCE NARROWED

The Company narrowed its 2025 financial guidance, with net income expected to be in the range of $262 million to $266 million, compared with its previously announced range of $261 million to $267 million. Earnings per diluted share are expected to be approximately $4.34 to $4.40, compared with the previously announced range of $4.32 to $4.42. There was no change to the respective midpoints of the 2025 net income and earnings per share guidance, both of which remain 2.5% above the original guidance forecasts for the year.

Capital expenditures, including asset removal costs, are still expected to be approximately $750 million in 2025.

EARNINGS CONFERENCE CALL AND WEBCAST

The ONE Gas executive management team will host a conference call on Tuesday, November 4, 2025, at 11 a.m. Eastern Standard Time (10 a.m. Central Standard Time). The call also will be carried live on the ONE Gas website.

To participate in the telephone conference call, dial 833-470-1428, passcode 020289, or log on to www.onegas.com/investors and select Events and Presentations.

If you are unable to participate in the conference call or the webcast, a replay will be available on the ONE Gas website, www.onegas.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 866-813-9403, passcode 909340.

ONE Gas, Inc. (NYSE: OGS) is a 100% regulated natural gas utility, and trades on the New York Stock Exchange under the symbol "OGS." ONE Gas is included in the S&P MidCap 400 Index and is one of the largest natural gas utilities in the United States.

Headquartered in Tulsa, Oklahoma, ONE Gas provides a reliable and affordable energy choice to more than 2.3 million customers in Kansas, Oklahoma and Texas. Its divisions include Kansas Gas Service, the largest natural gas distributor in Kansas; Oklahoma Natural Gas, the largest in Oklahoma; and Texas Gas Service, the third largest in Texas, in terms of customers.

For more information and the latest news about ONE Gas, visit onegas.com and follow its social channels: @ONEGas, Facebook, LinkedIn and YouTube.

Some of the statements contained and incorporated in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The forward-looking statements relate to our anticipated financial performance, liquidity, management's plans and objectives for our future operations, our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.

Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "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.

One should not place undue reliance on forward-looking statements, which are applicable only as of the date of this news release. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, costs, liquidity, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:

These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our Annual Report. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.

APPENDIX

ONE Gas, Inc.

CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended

Nine Months Ended

September 30,

(Unaudited)

2025

2024

2025

2024

(Thousands of dollars, except per share amounts)

Total revenues

$ 379,125

$ 340,398

$ 1,738,056

$ 1,452,855

Cost of natural gas

76,614

59,632

707,018

514,593

Operating expenses

Operations and maintenance

137,198

130,743

403,480

385,403

Depreciation and amortization

76,933

72,126

237,951

221,247

General taxes

22,999

18,448

71,872

57,023

Total operating expenses

237,130

221,317

713,303

663,673

Operating income

65,381

59,449

317,735

274,589

Other income, net

2,363

2,982

5,453

7,467

Interest expense, net

(35,373)

(39,148)

(106,349)

(107,475)

Income before income taxes

32,371

23,283

216,839

174,581

Income taxes

(5,905)

(4,015)

(38,921)

(28,753)

Net income

$ 26,466

$ 19,268

$ 177,918

$ 145,828

Earnings per share

Basic

$ 0.44

$ 0.34

$ 2.96

$ 2.57

Diluted

$ 0.44

$ 0.34

$ 2.94

$ 2.56

Average shares (thousands)

Basic

60,183

56,825

60,125

56,768

Diluted

60,554

57,093

60,425

56,906

Dividends declared per share of stock

$ 0.67

$ 0.66

$ 2.01

$ 1.98

APPENDIX

ONE Gas, Inc.

CONSOLIDATED BALANCE SHEETS

September 30,

December 31,

(Unaudited)

2025

2024

Assets

(Thousands of dollars)

Property, plant and equipment

$ 9,587,605

$ 9,124,134

Accumulated depreciation and amortization

2,577,880

2,478,261

Net property, plant and equipment

7,009,725

6,645,873

Current assets

Cash and cash equivalents

9,047

57,995

Restricted cash and cash equivalents

11,738

20,542

Total cash, cash equivalents and restricted cash and cash equivalents

20,785

78,537

Accounts receivable, net

210,173

408,448

Materials and supplies

97,453

91,662

Income tax receivable

53,624

Natural gas in storage

198,045

161,184

Regulatory assets

70,619

101,210

Other current assets

28,508

35,216

Total current assets

679,207

929,881

Goodwill and other assets

Regulatory assets

260,583

278,006

Securitized intangible asset, net

241,475

265,951

Goodwill

157,953

Pension and other postemployment benefits

52,277

42,882

Other assets

103,054

105,025

Total goodwill and other assets

815,342

849,817

Total assets

$ 8,504,274

$ 8,425,571

APPENDIX

ONE Gas, Inc.

CONSOLIDATED BALANCE SHEETS

(Continued)

September 30,

December 31,

(Unaudited)

2025

2024

Equity and Liabilities

(Thousands of dollars)

Equity and long-term debt

Common stock, $0.01 par value:

authorized 250,000,000 shares; issued and outstanding 59,999,041 shares at September 30, 2025; issued and outstanding 59,876,861 shares at December 31, 2024

$ 600

$ 599

Paid-in capital

2,317,921

2,294,469

Retained earnings

863,777

809,606

Accumulated other comprehensive income (loss)

(126)

Total equity

3,182,376

3,104,548

Other long-term debt, excluding current maturities, net of issuance costs

2,132,689

2,131,718

Securitized utility tariff bonds, excluding current maturities, net of issuance costs

222,879

253,568

Total long-term debt, excluding current maturities, net of issuance costs

2,355,568

2,385,286

Total equity and long-term debt

5,537,944

5,489,834

Current liabilities

Current maturities of other long-term debt

249,646

Current maturities of securitized utility tariff bonds

30,566

28,956

Notes payable

764,400

914,600

Accounts payable

121,070

261,321

Accrued taxes other than income

73,688

75,608

Regulatory liabilities

61,208

22,525

Customer deposits

56,662

56,243

Other current liabilities

96,694

99,009

Total current liabilities

1,453,934

1,458,276

Deferred credits and other liabilities

Deferred income taxes

937,841

891,738

Regulatory liabilities

461,739

467,563

Other deferred credits

112,816

118,160

Total deferred credits and other liabilities

1,512,396

1,477,461

Commitments and contingencies

Total liabilities and equity

$ 8,504,274

$ 8,425,571

APPENDIX

ONE Gas, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended

September 30,

(Unaudited)

2025

2024

(Thousands of dollars)

Operating activities

Net income

$ 177,918

$ 145,828

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

237,951

221,247

Deferred income taxes

30,742

82,052

Share-based compensation expense

11,305

10,458

Provision for doubtful accounts

5,843

3,736

Changes in assets and liabilities:

Accounts receivable

192,432

167,880

Materials and supplies

(5,791)

(16,743)

Natural gas in storage

(36,861)

6,302

Asset removal costs

(35,987)

(48,135)

Accounts payable

(130,571)

(116,385)

Accrued taxes other than income

(1,920)

3,036

Customer deposits

419

10,350

Regulatory assets and liabilities - current

55,334

(106,051)

Regulatory assets and liabilities - noncurrent

23,620

13,374

Other assets and liabilities - current

3,339

(67,145)

Other assets and liabilities - noncurrent

8,045

(4,023)

Cash provided by operating activities

535,818

305,781

Investing activities

Capital expenditures

(539,433)

(523,590)

Other investing expenditures

(8,053)

(3,760)

Other investing receipts

3,629

5,122

Cash used in investing activities

(543,857)

(522,228)

Financing activities

Borrowings (repayments) of notes payable, net

(150,200)

862,900

Issuance of other long-term debt, net of premiums

250,000

253,651

Long-term debt financing costs

(432)

—

Repayment of other long-term debt

(10)

(773,000)

Repayment of securitized utility tariff bonds

(29,493)

(27,939)

Issuance of common stock

3,561

3,368

Dividends paid

(120,505)

(112,064)

Tax withholdings related to net share settlements of stock compensation

(2,634)

(1,098)

Cash provided by (used in) financing activities

(49,713)

205,818

Change in cash, cash equivalents, restricted cash and restricted cash equivalents

(57,752)

(10,629)

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period

78,537

39,387

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period

$ 20,785

$ 28,758

Supplemental cash flow information:

Cash paid for interest, net of amounts capitalized

$ 103,926

$ 110,667

Cash received for state income taxes

$ (768)

$ (1,832)

Cash paid for federal income taxes

$ 7,763

$ 600

APPENDIX

ONE Gas, Inc.

KGSS-I SECURITIZATION

In November 2022, Kansas Gas Service Securitization I, L.L.C. (KGSS-I) issued $336 million of securitized utility tariff bonds. KGSS-I used the proceeds from the issuance to purchase the Securitized Utility Tariff Property from Kansas Gas Service, pay for debt issuance costs, and reimburse Kansas Gas Service for upfront securitization costs paid on behalf of KGSS-I.

Revenues for the three months ended September 30, 2025, include $11.2 million associated with KGSS-I, which is offset by $7.6 million in operating and amortization expense and $3.6 million in interest expense, net. Compared to the same three month period last year, revenues increased $0.7 million, which was offset by a $1.1 million increase in operating and amortization expense and a $0.4 million decrease in interest expense, net.

Revenues for the nine months ended September 30, 2025, include $36.1 million associated with KGSS-I, which is offset by $24.8 million in operating and amortization expense and $11.1 in interest expense, net. Compared to the same nine month period last year, revenues increased $2.3 million, which was offset by a $3.4 million increase in amortization and operating expense and a $1.1 million decrease in interest expense, net.

The following table summarizes the impact of KGSS-I on the consolidated balance sheets, for the periods indicated:

September 30,

2025

2024

(Thousands of dollars)

Restricted cash and cash equivalents

$ 11,738

$ 20,542

Accounts receivable

4,381

4,659

Securitized intangible asset, net

241,475

265,951

Total assets

$ 257,594

$ 291,152

Current maturities of securitized utility tariff bonds

$ 30,566

$ 28,956

Accounts payable

319

Accrued interest

2,358

6,568

Securitized utility tariff bonds, excluding current maturities, net of discounts and issuance costs $4.4 million and $4.8 million, as of September 30, 2025 and December 31, 2024, respectively

222,879

253,568

Paid-in capital

1,680

1,681

Retained earnings

Total liabilities and equity

$ 257,594

$ 291,152

The following table summarizes the impact of KGSS-I on the consolidated statements of income, for the periods indicated:

Three Months Ended

Nine Months Ended

September 30,

2025

2024

2025

2024

(Thousands of dollars)

Operating revenues

$ 11,216

$ 10,515

$ 36,058

$ 33,741

Operating expense

(110)

(111)

(331)

(332)

Amortization expense

(7,490)

(6,429)

(24,476)

(21,109)

Interest income

165

199

425

539

Interest expense

(3,745)

(4,138)

(11,568)

(12,731)

Income before income taxes

108

Income taxes

—

Net income

$ 36

$ 108

APPENDIX

ONE Gas, Inc.

INFORMATION AT A GLANCE

Three Months Ended

Nine Months Ended

September 30,

(Unaudited)

2025

2024

2025

2024

(Millions of dollars)

Natural gas sales

327.3

289.8

1,567.2

1,290.7

Transportation revenues

31.0

30.6

105.8

101.3

Securitization customer charges

11.2

10.5

36.0

33.7

Other revenues

9.6

9.5

29.1

27.2

Total revenues

379.1

340.4

1,738.1

1,452.9

Cost of natural gas

76.6

59.6

707.0

514.6

Operating costs

160.2

149.2

475.4

442.5

Depreciation and amortization

76.9

72.1

238.0

221.2

Operating income

65.4

59.5

317.7

274.6

Net income

26.5

19.3

177.9

145.8

Capital expenditures and asset removal costs

207.6

197.7

575.4

571.7

Volumes (Bcf)

Natural gas sales

Residential

7.7

7.5

79.2

70.4

Commercial and industrial

4.1

4.0

29.1

26.2

Other

0.5

0.2

2.2

1.5

Total sales volumes delivered

12.3

11.7

110.5

98.1

Transportation

46.1

48.1

160.1

163.7

Total volumes delivered

58.4

59.8

270.6

261.8

Average number of customers (in thousands)

Residential

2,109

2,096

2,119

2,103

Commercial and industrial

161

163

Other

Transportation

Total customers

2,284

2,272

2,296

2,281

Heating Degree Days

Actual degree days

6,074

5,127

Normal degree days

5,953

5,944

Percent colder (warmer) than normal weather

(71) %

(86) %

2 %

(14) %

Statistics by State

Oklahoma

Average number of customers (in thousands)

928

920

931

924

Actual degree days

2,080

1,798

Normal degree days

2,036

2,039

Percent colder (warmer) than normal weather

(100) %

2 %

(12) %

Kansas

Average number of customers (in thousands)

646

647

653

652

Actual degree days

2,943

2,430

Normal degree days

2,921

2,899

Percent colder (warmer) than normal weather

(63) %

(82) %

1 %

(16) %

Texas

Average number of customers (in thousands)

710

705

712

705

Actual degree days

1,051

899

Normal degree days

996

1,006

Percent colder (warmer) than normal weather

(100) %

6 %

(11) %

Analyst Contact:

Erin Dailey

918-947-7441

Media Contact:

Leah Harper

918-947-7123

SOURCE ONE Gas, Inc.