ONE Gas' (OGS) Earnings and Revenues Beat Estimates in Q3

ONE Gas Inc. OGS reported third-quarter 2022 operating earnings per share (EPS) of 44 cents, which surpassed the Zacks Consensus Estimate of 41 cents by 7.3%.

The bottom line improved by 15.8% from the year-ago earnings of 38 cents per share, primarily due to contributions from the new rates and higher demand from an expanding residential customer base.

Total Revenues

ONE Gas recorded revenues of $359 million in the third quarter, which surpassed the Zacks Consensus Estimate of $290 million by 24%. The top line also improved by 31% from the year-ago level.

 

ONE Gas, Inc. Price, Consensus and EPS Surprise

ONE Gas, Inc. Price, Consensus and EPS Surprise

ONE Gas, Inc. price-consensus-eps-surprise-chart | ONE Gas, Inc. Quote

Highlights of the Release

Total natural gas volumes delivered in the third quarter were 62.6 billion cubic feet, down 8.2% from the year-ago level due to lower transportation sales volume. In the reported quarter, ONE Gas served 2,244,000 customers, 0.5% higher than the year-ago quarter level.

Total operating expenses in the reported quarter increased 7.8% from the year-ago figure to $186.1 million.

The operating income in the reported quarter increased 12.7% year over year to $47.1 million.

ONE Gas incurred net interest expenses of $19.6 million, up 27.3%.

Financial Highlights

As of Sep 30, 2022, OGS had cash and cash equivalents of $10.4 million compared with $8.9 million as of Dec 31, 2021.

Long-term debt (excluding current maturities) was $2,429.1 million as of Sep 30, 2022 compared with $3,683.4 million as of Dec 31, 2021.

Cash provided by (used in) operating activities for the first nine months of 2022 was $1,555.8 million compared with $1,560.6 million in the year-ago period.

Guidance

ONE Gas narrowed the 2022 net income in the range of $217-$226 million from the earlier range of $215-$227 million. The company also narrowed its 2022 EPS expectations in the band of $4.00-$4.16 from the earlier guidance of $3.96-$4.20. The midpoint of the new earnings guidance is $4.08 per share, higher than the Zacks Consensus Estimate of $4.07 per share.

Capital expenditure is expected to be $650 million for 2022.

Zacks Rank

Currently, ONE Gas carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Atmos Energy Corporation ATO is slated to report fourth-quarter fiscal 2022 earnings on Nov 9, after market close. The Zacks Consensus Estimate for Atmos Energy’s fiscal fourth-quarter EPS is pegged at 46 cents.

Atmos Energy’s long-term (three to five-year) earnings growth is currently pegged at 7.5%. The Zacks Consensus Estimate for ATO’s 2022 earnings implies year-over-year growth of 8.8%.

National Fuel Gas Company NFG is slated to report fourth-quarter fiscal 2022 earnings on Nov 4. The Zacks Consensus Estimate for National Fuel Gas Company’s fourth-quarter EPS is pegged at $1.26.

National Fuel Gas Company’s long-term earnings growth is currently pegged at 14.3%. The Zacks Consensus Estimate for NFG’s 2022 earnings implies year-over-year growth of 38.7%.

MDU Resources Group MDU is slated to report third-quarter 2022 earnings on Nov 3, before market open. The Zacks Consensus Estimate for MDU Resources Group’s third-quarter EPS is pegged at 69 cents.

MDU Resources Group’s long-term earnings growth is currently pegged at 6.9%. The Zacks Consensus Estimate for MDU’s 2022 earnings implies a year-over-year decline of 3.7%.

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