OGS · ONE Gas, Inc.

ONE Gas reported solid first quarter 2026 results, with GAAP net income rising 7.8% year-over-year to $128.7 million ($2.04 diluted EPS), and adjusted net income increasing 11.1% to $133.4 million ($2.11 diluted EPS). Operating income grew $9.1 million year-over-year to $189.6 million, primarily driven by $27.3 million in incremental revenue from new rates—underscoring the effectiveness of recent regulatory outcomes. This gain was partially offset by $6.8 million in higher employee-related costs, $1.3 million in increased outside services, and an $8.9 million reduction in revenue from lower sales and transport volumes, though weather normalization mechanisms mitigated the impact of a 24.6% warmer-than-prior-year winter. Net interest expense declined $3.0 million, aided by lower commercial paper rates and Texas House Bill 4384. The company affirmed its December 2025 and February 2026 guidance ranges for full-year 2026, signaling confidence in execution amid favorable regulatory developments—including Kansas HB 2435 expanding the Gas System Reliability Surcharge and pending rate cases in Texas and Oklahoma. Management highlighted business model resilience and long-term value creation, reiterating expectations for 7–9% annual GAAP net income growth and 5–7% per-share growth over the five-year outlook. The declared $0.68 quarterly dividend—up from $0.66 in Q1 2025—reinforces the company’s commitment to consistent capital return, supported by stable regulated cash flows and disciplined capital allocation.