Key Highlights

  • Adjusted Net Income was USD 33.5 million, or USD 0.53 per diluted share, versus USD 28.6 million, or USD 0.47.
  • Net income was USD 31.2 million, or USD 0.49 per share, compared with USD 26.5 million, or USD 0.44.
  • Operating income rose to USD 77.4 million from USD 65.4 million, helped by USD 13.5 million of new rate revenue.
  • The company raised 2026 adjusted Earnings guidance to USD 4.95 to USD 5.01 from USD 4.89 to USD 4.95.

Quarter in Numbers

ONE Gas, Inc. (NYSE:OGS), a Natural Gas Utility serving Oklahoma, Kansas and Texas, reported third-quarter 2026 adjusted net income of USD 33.5 million, or USD 0.53 per diluted share, compared with USD 28.6 million, or USD 0.47. Net income was USD 31.2 million, or USD 0.49, versus USD 26.5 million, or USD 0.44. Operating Income rose to USD 77.4 million from USD 65.4 million, mainly on a USD 13.5 million increase in Revenue from new rates and a USD 3.3 million increase in residential sales from net customer growth in Oklahoma and Texas. Higher employee-related cost of USD 1.0 million and Depreciation and amortization of USD 2.8 million partly offset those gains.

Net interest expense, excluding interest on securitized bonds, rose USD 1.6 million, reflecting interest on a USD 250 million 13-month term Loan that matured in September and the new senior notes. Capital expenditures and asset removal costs were USD 229.0 million versus USD 207.6 million, mainly for system integrity and service extensions.

Year to Date

For the nine months, adjusted net income was USD 218.9 million, or USD 3.47 per diluted share, versus USD 181.3 million, or USD 3.00. Net income was USD 206.7 million, or USD 3.27, versus USD 177.9 million, or USD 2.94. Operating income rose to USD 349.6 million from USD 317.7 million, with USD 57.2 million coming from new rates, offset in part by USD 11.3 million lower revenue from reduced sales and transport volumes, a USD 13.4 million rise in employee costs and higher outside services, fleet and bad debt expense. Weather was 23% warmer than normal and 25% warmer than the prior year, with the impact on operating income mitigated by weather normalization mechanisms.

Financing and Dividend

In August the company issued USD 375 million of 5.45% ten-year senior notes due September 2036. Chief executive Robert McAnnally said the 2026 financing plan is complete, that this is the second raise of the year to the financial outlook, that diverse large-load Demand is developing across the footprint, and that average 2026 customer bills are projected to be flat compared with last year. The board declared a quarterly Dividend of USD 0.68 per share, or USD 2.72 annualized, payable December 3, 2026 to holders of record on November 16, 2026.

Rate Case and Financing Indicators

Regulatory activity supports revenue. Kansas Gas Service received approval on September 22 for a Gas System Reliability Surcharge increase of about USD 14.3 million, effective in October. Texas Gas Service received approval for a USD 36.9 million revenue increase effective in July, and Oklahoma Natural Gas filed its annual Performance-Based Rate Change application. Items to track include new rate recovery, interest cost after the term loan maturity, weather effects and large-load customer demand.