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ONE Gas (OGS) Earnings Beat Estimates in Q3, Increase Y/Y
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ONE Gas Inc. (OGS - Free Report) reported third-quarter 2020 earnings of 39 cents per share, beating the Zacks Consensus Estimate of 36 cents by 8.3%.
The bottom line also improved 18.2% from the year-ago earnings, primarily owing to new rates in Kansas and Oklahoma, and residential customer growth.
Total Revenues
The company recorded revenues of $244.6 million in the third quarter, which missed the Zacks Consensus Estimate of $267.3 million by 8.5%. The top line also declined 1.6% from the year-ago level.
Natural gas sales volume delivered in the reported quarter was 12.1 billion cubic feet (Bcf), up 0.8% year over year, primarily on higher residential customer usage. Total volumes delivered in the same period were 61.7 Bcf, up 3% from the year-ago period.
Total operating expenses in the reported quarter increased 2.1% from the year-ago figure to $163.5 million.
Operating income in the reported quarter improved 4.9% year over year to $40.7 million.
In the third quarter of 2020, the company’s customer base rose 1.4% from the year-ago time frame, which aided its both top and the bottom line.
The company incurred net interest expenses of $15.5 million, down 1.5% from the prior-year figure.
Financial Highlights
As of Sep 30, 2020, ONE Gas had cash and cash equivalents of $6.2 million compared with $17.9 million at the end of 2019.
Long-term debt (excluding current maturities) was $1,582.2 million as of Sep 30, 2020, compared with $1,286.1 million as of Dec 31, 2019.
Cash provided by operating activities in first nine months of 2020 was $325.3 million compared with $288.5 million in the year-ago period.
Guidance
ONE Gas expects its 2020 net income to be near the upper end of the guidance range of $186-$198 million. Its annual earnings per share outlook is projected in the $3.44-$3.68 band. The midpoint of the EPS guidance is $3.56, marginally lower than the current Zacks Consensus Estimate of $3.57 for the period.
Capital expenditure still expected to be in the range of $500 million to $525 million for 2020.
Sempra Energy (SRE - Free Report) is slated to release third-quarter 2020 earnings on Nov 5. The Zacks Consensus Estimate for the period’s earnings per share is pegged at $1.47.
Atmos Energy Corporation (ATO - Free Report) is scheduled to release fourth-quarter fiscal 2020 results on Nov 11. The Zacks Consensus Estimate for the period’s earnings per share is pegged at 52 cents.
Peer Result
ONEOK Inc (OKE - Free Report) posted third-quarter 2020 operating earnings of 70 cents per share, beating the Zacks Consensus Estimate of 59 cents by 18.6%.
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ONE Gas (OGS) Earnings Beat Estimates in Q3, Increase Y/Y
ONE Gas Inc. (OGS - Free Report) reported third-quarter 2020 earnings of 39 cents per share, beating the Zacks Consensus Estimate of 36 cents by 8.3%.
The bottom line also improved 18.2% from the year-ago earnings, primarily owing to new rates in Kansas and Oklahoma, and residential customer growth.
Total Revenues
The company recorded revenues of $244.6 million in the third quarter, which missed the Zacks Consensus Estimate of $267.3 million by 8.5%. The top line also declined 1.6% from the year-ago level.
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 12.1 billion cubic feet (Bcf), up 0.8% year over year, primarily on higher residential customer usage. Total volumes delivered in the same period were 61.7 Bcf, up 3% from the year-ago period.
Total operating expenses in the reported quarter increased 2.1% from the year-ago figure to $163.5 million.
Operating income in the reported quarter improved 4.9% year over year to $40.7 million.
In the third quarter of 2020, the company’s customer base rose 1.4% from the year-ago time frame, which aided its both top and the bottom line.
The company incurred net interest expenses of $15.5 million, down 1.5% from the prior-year figure.
Financial Highlights
As of Sep 30, 2020, ONE Gas had cash and cash equivalents of $6.2 million compared with $17.9 million at the end of 2019.
Long-term debt (excluding current maturities) was $1,582.2 million as of Sep 30, 2020, compared with $1,286.1 million as of Dec 31, 2019.
Cash provided by operating activities in first nine months of 2020 was $325.3 million compared with $288.5 million in the year-ago period.
Guidance
ONE Gas expects its 2020 net income to be near the upper end of the guidance range of $186-$198 million. Its annual earnings per share outlook is projected in the $3.44-$3.68 band. The midpoint of the EPS guidance is $3.56, marginally lower than the current Zacks Consensus Estimate of $3.57 for the period.
Capital expenditure still expected to be in the range of $500 million to $525 million for 2020.
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
Sempra Energy (SRE - Free Report) is slated to release third-quarter 2020 earnings on Nov 5. The Zacks Consensus Estimate for the period’s earnings per share is pegged at $1.47.
Atmos Energy Corporation (ATO - Free Report) is scheduled to release fourth-quarter fiscal 2020 results on Nov 11. The Zacks Consensus Estimate for the period’s earnings per share is pegged at 52 cents.
Peer Result
ONEOK Inc (OKE - Free Report) posted third-quarter 2020 operating earnings of 70 cents per share, beating the Zacks Consensus Estimate of 59 cents by 18.6%.
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Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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