Back to top

Image: Bigstock

ONE Gas (OGS) Earnings Beat Estimates in Q2, Increase Y/Y

Read MoreHide Full Article

ONE Gas Inc. (OGS - Free Report) reported second-quarter 2020 earnings of 48 cents per share, beating the Zacks Consensus Estimate of 45 cents by 6.7%.
The bottom line also improved 4.3% from the year-ago earnings, primarily owing to new rates in Kansas and Texas and residential customer growth, which in turn, spurred demand for natural gas.

Total Revenues

The company recorded total revenues of $273.3 million in the second quarter, which missed the Zacks Consensus Estimate of $296 million by 7.7%. Revenues also declined 5.9% 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

Quarterly Highlights

Natural gas sales volume delivered in the reported quarter was 20.7 billion cubic feet (Bcf), up 9.5% year over year, primarily on higher residential customer usage. Total volumes delivered in the same period were 71.6 Bcf, up 1.9% from the year-ago period.

Total operating expenses in the reported quarter inched up 3.2% from the year-ago figure to $166.2 million.

Operating income in the reported quarter dipped 4.9% year over year to $44.6 million.

In the second quarter of 2020, the company’s customer base rose 1.1% from the year-ago time frame, which aided its top and the bottom line.

The company incurred net interest expenses of $15.8 million, up 2.9% from the prior-year figure.

Financial Highlights

As of Jun 30, 2020, ONE Gas had cash and cash equivalents of $10.5 million compared with $17.9 million at the end of 2019.

Long-term debt (excluding current maturities) was $1,581.9 million as of Jun 30, 2020, compared with $1,286.1 million as of Dec 31, 2019.

Cash provided by operating activities in first-half 2020 was $278.7 million compared with $241.2 million in the year-ago period.

Guidance

ONE Gas reiterated its 2020 guidance for net income in the range of $186-$198 million. Its earnings per share outlook are projected in the $3.44-$3.68 band. The midpoint of management’s 2020 EPS guidance is $3.56, marginally higher than the current Zacks Consensus Estimate of $3.55 for the period.

Capital expenditure view including asset removal costs is increased to $500-$525 million from $475 million, primarily due to the extension of services to new customers.

Zacks Rank

Currently, ONE Gas carries a Zacks Rank #4 (Sell).

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

Upcoming Releases

Sempra Energy (SRE - Free Report) is slated to release second-quarter 2020 earnings on Aug 5. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share is pegged at $1.65.

Atmos Energy Corp. (ATO - Free Report) is scheduled to release third-quarter fiscal 2020 results on Aug 5. The Zacks Consensus Estimate for earnings per share in the fiscal third quarter is pegged at 77 cents.

National Fuel Gas Company (NFG - Free Report) is set to release third-quarter fiscal 2020 results on Aug 6. The Zacks Consensus Estimate for the quarterly earnings per share stands at 50 cents.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

Published in