ONE Gas Announces First Quarter 2025 Financial Results; Expects to Achieve the Upper Half of 2025 Financial Guidance; Declares Second Quarter Dividend

PR Newswire

TULSA, Okla., May 5, 2025

Analyst call and webcast scheduled tomorrow, May 6 at 11 a.m. EST

TULSA, Okla., May 5, 2025 /PRNewswire/ -- ONE Gas, Inc. $(OGS)$ today announced its first-quarter financial results, said that it expects to achieve the upper half of its previously announced 2025 financial guidance and declared its quarterly dividend.

"We achieved strong financial results in the first quarter due to our effective regulatory strategy and a disciplined approach to managing expenses," said Robert S. McAnnally, president and chief executive officer. "Safety remains our top priority as we serve our customers and meet the growing demand for natural gas across our service territory."

FIRST QUARTER 2025 FINANCIAL RESULTS & HIGHLIGHTS

   -- First quarter 2025 net income was $119.4 million, or $1.98 per diluted 
      share, compared with $99.3 million, or $1.75 per diluted share, in the 
      first quarter 2024; 
 
   -- While weather across the Company's service areas was 5 percent colder 
      than normal and 16 percent colder than the first quarter last year, the 
      impact on operating income was largely tempered by regulatory weather 
      normalization mechanisms; and 
 
   -- The board of directors declared a quarterly dividend of $0.67 per share 
      ($2.68 annualized), payable on June 3, 2025, to shareholders of record at 
      the close of business on May 19, 2025. 

FIRST QUARTER 2025 FINANCIAL PERFORMANCE

ONE Gas reported operating income of $180.5 million in the first quarter, compared with $145.9 million in the first quarter 2024, which primarily reflects:

   -- an increase of $51.9 million from new rates; and 
 
   -- an increase of $2.3 million in residential sales due primarily to net 
      customer growth in Oklahoma and Texas. 

The increase was partially offset by:

   -- an increase of $5.1 million in depreciation and amortization expense from 
      additional capital investment; 
 
   -- an increase of $4.7 million in ad valorem taxes, primarily due to 
      regulatory outcomes which took effect during the quarter; 
 
   -- an increase of $3.2 million in employee-related costs, due primarily to 
      strategic investments in the Company's workforce and ongoing in-sourcing 
      efforts, which have strengthened operational oversight and improved 
      overall expense management; and 
 
   -- a net decrease of $6.5 million due to the impact of weather normalization 
      mechanisms, largely offset by higher sales volumes. 

Excluding interest related to KGSS-I securitized bonds, net interest expense increased $4.7 million for the three months ending March 31, 2025. The increase in interest expense is due primarily to the reopening of the outstanding 5.10 percent senior notes in August 2024 to issue an additional $250 million and higher average commercial paper balances.

Income tax expense reflects credits for amortization of the regulatory liability associated with excess deferred income taxes $(EDIT)$ of $8.1 million and $10.1 million for the three months ended March 31, 2025, and 2024, respectively.

Capital expenditures and asset removal costs were $177.7 million for the first quarter 2025 compared with $179.4 million in the same period last year, primarily representing expenditures for system integrity and extension of service to new areas.

REGULATORY ACTIVITIES UPDATE

In April 2025, Kansas Gas Service submitted an application to the Kansas Corporation Commission $(KCC.AU)$ requesting an increase of approximately $7.2 million related to its Gas System Reliability Surcharge. The KCC has until August 2025 to issue an order.

In April 2025, Texas Gas Service made Gas Reliability Infrastructure Program filings for all customers in the Rio Grande Valley service area, requesting a $3.2 million increase to be effective in September 2025.

In February 2025, Oklahoma Natural Gas filed its annual Performance-Based Rate Change application for the test year ended December 2024. The filing includes a requested $41.5 million base rate revenue increase, $2.4 million energy efficiency incentive and $13.2 million of EDIT to be credited to customers in 2026. A hearing is scheduled for June 12, 2025.

In February 2025, Texas Gas Service made Gas Reliability Infrastructure Program filings for customers in each of the Central-Gulf and West-North service areas, requesting increases of $15.4 million and $8.2 million, respectively, to be effective in June 2025.

2025 FINANCIAL GUIDANCE

The company expects to achieve the upper half of the 2025 financial guidance shared on Dec. 5, 2024, which provided for net income in the range of $254 million to $261 million and earnings per diluted share of $4.20 to $4.32.

Capital investments, including asset removal costs, are expected to be approximately $750 million in 2025, primarily targeted for system integrity and replacement projects. Capital investments for extensions to new customers are expected to be approximately $180 million.

EARNINGS CONFERENCE CALL AND WEBCAST

The ONE Gas executive management team will host a conference call on Tuesday, May 6, 2025, at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight 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 583185, 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 983295.

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:

   -- our ability to recover costs, income taxes and amounts equivalent to the 
      cost of property, plant and equipment, regulatory assets and our allowed 
      rate of return in our regulated rates or other recovery mechanisms; 
 
   -- cyber-attacks, which, according to experts, continue to increase in 
      volume and sophistication, or breaches of technology systems that could 
      disrupt our operations or result in the loss or exposure of confidential 
      or sensitive customer, employee, vendor, counterparty, or Company 
      information; further, increased remote working arrangements have required 
      enhancements and modifications to our information technology 
      infrastructure (e.g. Internet, Virtual Private Network, remote 
      collaboration systems, etc.), and any failures of the technologies, 
      including third-party service providers, that facilitate working remotely 
      could limit our ability to conduct ordinary operations or expose us to 
      increased risk or effect of an attack; 
 
   -- our ability to manage our operations and maintenance costs; 
 
   -- changes in regulation of natural gas distribution services, particularly 
      those in Oklahoma, Kansas and Texas; 
 
   -- the economic climate and, particularly, its effect on the natural gas 
      requirements of our residential and commercial customers; 

 
   -- the length and severity of a pandemic or other health crisis which could 
      significantly disrupt or prevent us from operating our business in the 
      ordinary course for an extended period; 
 
   -- competition from alternative forms of energy, including, but not limited 
      to, electricity, solar power, wind power, geothermal energy and biofuels; 
 
   -- adverse weather conditions and variations in weather, including seasonal 
      effects on demand and/or supply, the occurrence of severe storms in the 
      territories in which we operate, and climate change, and the related 
      effects on supply, demand, and costs; 
 
   -- indebtedness could make us more vulnerable to general adverse economic 
      and industry conditions, limit our ability to borrow additional funds 
      and/or place us at competitive disadvantage compared with competitors; 
 
   -- our ability to secure reliable, competitively priced and flexible natural 
      gas transportation and supply, including decisions by natural gas 
      producers to reduce production or shut-in producing natural gas wells and 
      expiration of existing supply and transportation and storage arrangements 
      that are not replaced with contracts with similar terms and pricing; 
 
   -- our ability to complete necessary or desirable expansion or 
      infrastructure development projects, which may delay or prevent us from 
      serving our customers or expanding our business; 
 
   -- operational and mechanical hazards or interruptions; 
 
   -- adverse labor relations; 
 
   -- the effectiveness of our strategies to reduce earnings lag, revenue 
      protection strategies and risk mitigation strategies, which may be 
      affected by risks beyond our control such as commodity price volatility, 
      counterparty performance or creditworthiness and interest rate risk; 
 
   -- the capital-intensive nature of our business, and the availability of and 
      access to, in general, funds to meet our debt obligations prior to or 
      when they become due and to fund our operations and capital expenditures, 
      either through (i) cash on hand, (ii) operating cash flow, or (iii) 
      access to the capital markets and other sources of liquidity; 
 
   -- our ability to obtain capital on commercially reasonable terms, or on 
      terms acceptable to us, or at all; 
 
   -- limitations on our operating flexibility, earnings and cash flows due to 
      restrictions in our financing arrangements; 
 
   -- cross-default provisions in our borrowing arrangements, which may lead to 
      our inability to satisfy all of our outstanding obligations in the event 
      of a default on our part; 
 
   -- changes in the financial markets during the periods covered by the 
      forward-looking statements, particularly those affecting the availability 
      of capital and our ability to refinance existing debt and fund 
      investments and acquisitions to execute our business strategy; 
 
   -- actions of rating agencies, including the ratings of debt, general 
      corporate ratings and changes in the rating agencies' ratings criteria; 
 
   -- changes in inflation and interest rates; 
 
   -- our ability to recover the costs of natural gas purchased for our 
      customers and any related financing required to support our purchase of 
      natural gas supply; 
 
   -- impact of potential impairment charges; 
 
   -- volatility and changes in markets for natural gas and our ability to 
      secure additional and sufficient liquidity on reasonable commercial terms 
      to cover costs associated with such volatility; 
 
   -- possible loss of local distribution company franchises or other adverse 
      effects caused by the actions of municipalities; 
 
   -- payment and performance by counterparties and customers as contracted and 
      when due, including our counterparties maintaining ordinary course terms 
      of supply and payments; 
 
   -- changes in existing or the addition of new environmental, safety, tax, 
      cybersecurity and other laws or regulations to which we and our 
      subsidiaries are subject, including those that may require significant 
      expenditures, significant increases in operating costs or, in the case of 
      noncompliance, substantial fines or penalties; 
 
   -- the effectiveness of our risk-management policies and procedures, and 
      employees violating our risk-management policies; 
 
   -- the uncertainty of estimates, including accruals and costs of 
      environmental remediation; 
 
   -- advances in technology, including technologies that increase efficiency 
      or that improve electricity's competitive position relative to natural 
      gas; 
 
   -- population growth rates and changes in the demographic patterns of the 
      markets we serve in Oklahoma, Kansas and Texas, and economic conditions 
      in these areas; 
 
   -- acts of nature and naturally occurring disasters; 
 
   -- political unrest and the potential effects of threatened or actual 
      terrorism and war; 
 
   -- the sufficiency of insurance coverage to cover losses; 
 
   -- the effects of our strategies to reduce tax payments; 
 
   -- changes in accounting standards; 
 
   -- changes in corporate governance standards; 
 
   -- existence of material weaknesses in our internal controls; 
 
   -- our ability to comply with all covenants in our indentures and the ONE 
      Gas Credit Agreement, a violation of which, if not cured in a timely 
      manner, could trigger a default of our obligations; 
 
   -- our ability to attract and retain talented employees, management and 
      directors, and shortage of skilled-labor; 
 
   -- unexpected increases in the costs of providing health care benefits, 
      along with pension and postemployment health care benefits, as well as 
      declines in the discount rates on, declines in the market value of the 
      debt and equity securities of, and increases in funding requirements for, 
      our defined benefit plans; and 
 
   -- our ability to successfully complete merger, acquisition or divestiture 
      plans, regulatory or other limitations imposed as a result of a merger, 
      acquisition or divestiture, and the success of the business following a 
      merger, acquisition or divestiture. 

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 
                                                 March 31, 
(Unaudited)                              2025                 2024 
-------------------------------   -------------------  ------------------- 
                                       (Thousands of dollars, except 
                                             per share amounts) 
 
Total revenues                       $        935,190     $        758,320 
 
Cost of natural gas                           512,462              383,003 
 
Operating expenses 
 Operations and maintenance                   135,295              132,783 
 Depreciation and amortization                 81,704               76,572 
 General taxes                                 25,230               20,102 
--------------------------------  -------------------  ------------------- 
Total operating expenses                      242,229              229,457 
--------------------------------  -------------------  ------------------- 
Operating income                              180,499              145,860 
--------------------------------  -------------------  ------------------- 
Other income, net                                 518                3,508 
Interest expense, net                        (35,697)             (31,357) 
--------------------------------  -------------------  ------------------- 
Income before income taxes                    145,320              118,011 
--------------------------------  -------------------  ------------------- 
Income taxes                                 (25,901)             (18,694) 
--------------------------------  -------------------  ------------------- 
Net income                           $        119,419    $          99,317 
================================  ===================  =================== 
 
Earnings per share 
 Basic                            $              1.99  $              1.75 
 Diluted                          $              1.98  $              1.75 
================================  ===================  =================== 
 
Average shares (thousands) 
 Basic                                         60,077               56,729 
 Diluted                                       60,266               56,800 
================================  ===================  =================== 
 
Dividends declared per share of 
 stock                            $              0.67  $              0.66 
================================  ===================  =================== 
 
 
                                  APPENDIX 
---------------------------------------------------------------------------- 
 
                               ONE Gas, Inc. 
                        CONSOLIDATED BALANCE SHEETS 
 

                                          March 31,          December 31, 
(Unaudited)                                  2025                2024 
------------------------------------  ------------------  ------------------ 
Assets                                        (Thousands of dollars) 
Property, plant and equipment 
 Property, plant and equipment        $        9,231,791  $        9,124,134 
 Accumulated depreciation and 
  amortization                                 2,493,171           2,478,261 
------------------------------------  ------------------  ------------------ 
 Net property, plant and equipment             6,738,620           6,645,873 
------------------------------------  ------------------  ------------------ 
Current assets 
 Cash and cash equivalents                        19,305              57,995 
 Restricted cash and cash 
  equivalents                                      8,883              20,542 
------------------------------------  ------------------  ------------------ 
 Total cash, cash equivalents and 
  restricted cash and cash 
  equivalents                                     28,188              78,537 
 Accounts receivable, net                        446,807             408,448 
 Materials and supplies                           87,981              91,662 
 Income tax receivable                            53,624              53,624 
 Natural gas in storage                           68,686             161,184 
 Regulatory assets                                36,538             101,210 
 Other current assets                             34,414              35,216 
------------------------------------  ------------------  ------------------ 
 Total current assets                            756,238             929,881 
------------------------------------  ------------------  ------------------ 
Goodwill and other assets 
 Regulatory assets                               268,581             278,006 
 Securitized intangible asset, net               258,257             265,951 
 Goodwill                                        157,953             157,953 
 Pension and other postemployment 
  benefits                                        44,366              42,882 
 Other assets                                    103,225             105,025 
------------------------------------  ------------------  ------------------ 
 Total goodwill and other assets                 832,382             849,817 
------------------------------------  ------------------  ------------------ 
 Total assets                         $        8,327,240  $        8,425,571 
====================================  ==================  ================== 
 
 
                                  APPENDIX 
---------------------------------------------------------------------------- 
 
                               ONE Gas, Inc. 
                        CONSOLIDATED BALANCE SHEETS 
                                (Continued) 
 
                                    March 31,              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 
    59,929,090 shares at 
    March 31, 2025; issued 
    and outstanding 
    59,876,861 shares at 
    December 31, 2024         $                  599  $                  599 
 Paid-in capital                           2,295,989               2,294,469 
 Retained earnings                           888,449                 809,606 
 Accumulated other 
  comprehensive loss                             (2)                   (126) 
 Total equity                              3,185,035               3,104,548 
----------------------------  ----------------------  ---------------------- 
 Other long-term debt, 
  excluding current 
  maturities, net of 
  issuance costs                           2,132,039               2,131,718 
 Securitized utility tariff 
  bonds, excluding current 
  maturities, net of 
  issuance costs                             238,363                 253,568 
----------------------------  ----------------------  ---------------------- 
 Total long-term debt, 
  excluding current 
  maturities, net of 
  issuance costs                           2,370,402               2,385,286 
----------------------------  ----------------------  ---------------------- 
 Total equity and long-term 
  debt                                     5,555,437               5,489,834 
----------------------------  ----------------------  ---------------------- 
Current liabilities 
 Current maturities of other 
  long-term debt                                  14                      14 
 Current maturities of 
  securitized utility tariff 
  bonds                                       29,750                  28,956 
 Notes payable                               811,900                 914,600 
 Accounts payable                            175,898                 261,321 
 Accrued taxes other than 
  income                                      77,853                  75,608 
 Regulatory liabilities                       39,665                  22,525 
 Customer deposits                            54,923                  56,243 
 Other current liabilities                    87,395                  99,009 
----------------------------  ----------------------  ---------------------- 
 Total current liabilities                 1,277,398               1,458,276 
----------------------------  ----------------------  ---------------------- 
Deferred credits and other 
liabilities 
 Deferred income taxes                       921,360                 891,738 
 Regulatory liabilities                      457,126                 467,563 
 Other deferred credits                      115,919                 118,160 
----------------------------  ----------------------  ---------------------- 
 Total deferred credits and 
  other liabilities                        1,494,405               1,477,461 
----------------------------  ----------------------  ---------------------- 
Commitments and 
contingencies 
----------------------------  ----------------------  ---------------------- 
 Total liabilities and 
  equity                          $        8,327,240      $        8,425,571 
============================  ======================  ====================== 
 
 
                                  APPENDIX 
---------------------------------------------------------------------------- 
 
                               ONE Gas, Inc. 
                   CONSOLIDATED STATEMENTS OF CASH FLOWS 
 
                                           Three Months Ended 
                                               March 31, 
(Unaudited)                          2025                     2024 
--------------------------  -----------------------  ----------------------- 
                                         (Thousands of dollars) 
Operating activities 
 Net income                     $           119,419     $             99,317 
 Adjustments to reconcile 
 net income to net cash 
 provided by operating 
 activities: 
 Depreciation and 
  amortization                               81,704                   76,572 
 Deferred income taxes                       19,146                   16,247 
 Share-based compensation 
  expense                                     3,656                    3,117 
 Provision for doubtful 
  accounts                                    2,331                    1,675 
 Changes in assets and 
 liabilities: 
   Accounts receivable                     (40,690)                   21,684 
   Materials and supplies                     3,681                  (2,700) 
   Natural gas in storage                    92,498                   76,646 
   Asset removal costs                     (11,089)                 (12,621) 
   Accounts payable                        (72,871)                 (68,117) 
   Accrued taxes other 
    than income                               2,245                  (4,388) 
   Customer deposits                        (1,320)                  (4,123) 
   Regulatory assets and 
    liabilities - current                    73,872                 (58,520) 
   Regulatory assets and 
    liabilities - 
    noncurrent                                9,425                    2,520 
   Other assets and 
    liabilities - current                  (11,650)                 (39,312) 
   Other assets and 
    liabilities - 
    noncurrent                                7,102                      265 
--------------------------  -----------------------  ----------------------- 
   Cash provided by 
    operating activities                    277,459                  108,262 
--------------------------  -----------------------  ----------------------- 
Investing activities 
 Capital expenditures                     (166,597)                (166,751) 
 Other investing 
  expenditures                              (2,427)                  (1,259) 
 Other investing receipts                     1,179                    2,029 
--------------------------  -----------------------  ----------------------- 
   Cash used in investing 
    activities                            (167,845)                (165,981) 
--------------------------  -----------------------  ----------------------- 
Financing activities 
 Borrowings (repayments) 
  of notes payable, net                   (102,700)                  864,900 
 Repayment of other 
  long-term debt                                (4)                (773,000) 
 Repayment of securitized 
  utility tariff bonds                     (14,547)                 (13,780) 
 Dividends paid                            (40,153)                 (37,336) 
 Tax withholdings related 
  to net share settlements 
  of stock compensation                     (2,559)                    (980) 
--------------------------  -----------------------  ----------------------- 

   Cash provided by (used 
    in) financing 
    activities                            (159,963)                   39,804 
--------------------------  -----------------------  ----------------------- 
   Change in cash, cash 
    equivalents, 
    restricted cash and 
    restricted cash 
    equivalents                            (50,349)                 (17,915) 
   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                     $             28,188     $             21,472 
==========================  =======================  ======================= 
 Supplemental cash flow 
 information: 
 Cash paid for interest, 
  net of amounts 
  capitalized                  $             36,268     $             41,497 
 Cash paid (received) for 
  state income taxes        $                    --    $             (2,797) 
 Cash paid (received) for   $                    --  $                    -- 
  federal income taxes 
==========================  =======================  ======================= 
 

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 March 31, 2025, include $11.6 million associated with KGSS-I, which is offset by $7.8 million in operating and amortization expense and $3.8 million in net interest expense. Revenues were in line compared to the same period last year, which was offset by a $0.3 million increase in operating and amortization expense and a $0.3 million decrease in net interest expense.

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

 
                                          March 31,           March 31, 
                                            2025                 2024 
-----------------------------------  -------------------  ------------------ 
                                             (Thousands of dollars) 
Restricted cash and cash 
 equivalents                         $             8,883  $           20,542 
Accounts receivable                                5,341               4,659 
Securitized intangible asset, net                258,257             265,951 
-----------------------------------  -------------------  ------------------ 
 Total assets                          $         272,487   $         291,152 
===================================  ===================  ================== 
Current maturities of securitized 
 utility tariff bonds                             29,750              28,956 
Accounts payable                                     169                 319 
Accrued interest                                   2,494               6,568 
Securitized utility tariff bonds, 
 excluding current maturities, net 
 of discounts and issuance costs 
 $4.7 million and $4.8 million, as 
 of March 31, 2025 and December 31, 
 2024, respectively                              238,363             253,568 
Paid-in capital                                    1,680               1,681 
Retained earnings                                     31                  60 
-----------------------------------  -------------------  ------------------ 
 Total liabilities and equity          $         272,487   $         291,152 
===================================  ===================  ================== 
 

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

 
                                      Three Months Ended 
                                          March 31, 
                                    2025              2024 
---------------------------   ----------------  ---------------- 
                                   (Thousands of dollars) 
Operating revenues               $      11,637     $      11,671 
Operating expense                        (110)             (111) 
Amortization expense                   (7,694)           (7,385) 
Interest income                            148               188 
Interest expense                       (3,944)           (4,327) 
----------------------------  ----------------  ---------------- 
Income before income taxes                  37                36 
----------------------------  ----------------  ---------------- 
Income taxes                                 6                -- 
---------------------------   ----------------  ---------------- 
Net income                    $             43  $             36 
============================  ================  ================ 
 
 
                                APPENDIX 
------------------------------------------------------------------------ 
 
                             ONE Gas, Inc. 
                        INFORMATION AT A GLANCE 
 
                                                  Three Months Ended 
                                                       March 31, 
(Unaudited)                                        2025          2024 
---------------------------------------------  -------------  ---------- 
                                                 (Millions of dollars) 
Natural gas sales                               $      870.4  $    694.1 
Transportation revenues                                 43.8        40.4 
Securitization customer charges                         11.6        11.7 
Other revenues                                           9.4        12.1 
---------------------------------------------      ---------   --------- 
Total revenues                                         935.2       758.3 
Cost of natural gas                                    512.5       383.0 
Operating costs                                        160.5       152.8 
Depreciation and amortization                           81.7        76.6 
---------------------------------------------      ---------   --------- 
Operating income                                $      180.5  $    145.9 
=============================================      =========   ========= 
Net income                                      $      119.4  $     99.3 
Capital expenditures and asset removal costs    $      177.7  $    179.4 
 
Volumes (Bcf) 
--------------------------------------------- 
Natural gas sales 
Residential                                             58.9        52.4 
Commercial and industrial                               19.2        17.0 
Other                                                    1.2         1.1 
Total sales volumes delivered                           79.3        70.5 
Transportation                                          65.3        63.4 
Total volumes delivered                                144.6       133.9 
 
Average number of customers (in thousands) 
--------------------------------------------- 
Residential                                            2,125       2,110 
Commercial and industrial                                165         165 
Other                                                      3           3 
Transportation                                            12          12 
Total customers                                        2,305       2,290 
 
Heating Degree Days 
--------------------------------------------- 
Actual degree days                                     5,513       4,741 
Normal degree days                                     5,231       5,219 
Percent colder (warmer) than normal weather              5 %       (9) % 
 
Statistics by State 
--------------------------------------------- 
 Oklahoma 
--------------------------------------------- 
 Average number of customers (in thousands)              934         928 
 Actual degree days                                    1,916       1,681 
 Normal degree days                                    1,797       1,800 
 Percent colder (warmer) than normal weather             7 %       (7) % 
 
 Kansas 
--------------------------------------------- 
 Average number of customers (in thousands)              659         656 
 Actual degree days                                    2,610       2,201 
 Normal degree days                                    2,486       2,460 
 Percent colder (warmer) than normal weather             5 %      (11) % 
 
 Texas 
--------------------------------------------- 
 Average number of customers (in thousands)              712         706 
 Actual degree days                                      987         859 
 Normal degree days                                      948         959 
 Percent colder (warmer) than normal weather             4 %      (10) % 
 
 
  Analyst Contact:  Erin Dailey 
                     918-947-7411 
  Media Contact:    Leah Harper 
                     918-947-7123 
 

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