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ONE Gas (OGS) Q4 Earnings In Line, Revenues Lag Estimates
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ONE Gas, Inc. (OGS - Free Report) reported fourth-quarter 2023 operating earnings per share (EPS) of $1.27 per share, which is on par with the Zacks Consensus Estimate. The bottom line increased 3.2% from the year-ago quarter’s figure of $1.23.
OGS reported 2023 earnings of $4.14 per share compared with $4.08 in 2022, indicating a year-over-year increase of 1.4%.
Total Revenues
ONE Gas recorded revenues of $605.9 million, which missed the Zacks Consensus Estimate of $815.6 million by 25.7%. The top line also decreased 25.9% from $818.2 million reported in the prior-year period.
OGS reported total revenues of nearly $2.4 billion in 2023 compared with $2.6 billion in 2022, implying a year-over-year decrease of 8.1%.
Total natural gas volumes delivered in the reported quarter were 109.7 billion cubic feet (bcf), down 5.9% from the year-ago quarter’s level. ONE Gas served 2,263,000 customers during the reported quarter, up 0.8% year over year.
Total operating expenses were $231.2 million, up 10.1% from that recorded in the comparable period of 2022. This increase was due to a rise in Operations and maintenance (O&M) and depreciation and amortization expenses.
Operating income increased 3.4% year over year to $107.1 million.
ONE Gas incurred net interest expenses of $29.8 million, up 14.5% from the year-ago quarter’s level.
Financial Highlights
As of Dec 31, 2023, OGS had cash and cash equivalents of $18.8 million compared with $9.7 million as of Dec 31, 2022.
Long-term debt (excluding current maturities) was $1.88 billion as of Dec 31, 2023, compared with $2.35 billion as of Dec 31, 2022.
In 2023, cash provided by operating activities was $0.94 billion compared with $1.57 billion in the year-ago period.
2024 Guidance
ONE Gas expects 2024 earnings per share in the range of $3.70-$4. The Zacks Consensus Estimate for earnings is pegged at $3.87 per share, higher than the mid-point of the company’s guided range.
The company's 2024 earnings guidance includes the benefit of new rates and customer growth, offset by higher operating expenses, including employee-related and contractor costs, depreciation expense from capital investments and interest expense due to higher interest rates. It also assumes normal weather conditions.
OGS continues to expect capital expenditures, including asset removal costs, of approximately $750 million in 2024. The company aims to invest $4.25 billion over the next five years to further strengthen its operations.
UGI Corporation (UGI - Free Report) reported first-quarter fiscal 2024 adjusted earnings of $1.20 per share, which surpassed the Zacks Consensus Estimate of $1.12 by 7.1%.
The Zacks Consensus Estimate for UGI’s 2024 earnings is pinned at $2.84 per share.
Spire (SR - Free Report) released first-quarter fiscal 2024 adjusted earnings of $1.47 per share, which beat the Zacks Consensus Estimate of $1.37 by 7.3%.
The Zacks Consensus Estimate for SR’s 2024 earnings is pegged at $4.34 per share, implying a year-over-year improvement of 7.16%.
Atmos Energy (ATO - Free Report) reported first-quarter fiscal 2024 adjusted earnings of $2.08 per share, which
lagged the Zacks Consensus Estimate of $2.09 by 0.5%.
The Zacks Consensus Estimate for ATO’s 2024 earnings is pegged at $6.57 per share, calling for a year-over-year improvement of 7.70%.
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ONE Gas (OGS) Q4 Earnings In Line, Revenues Lag Estimates
ONE Gas, Inc. (OGS - Free Report) reported fourth-quarter 2023 operating earnings per share (EPS) of $1.27 per share, which is on par with the Zacks Consensus Estimate. The bottom line increased 3.2% from the year-ago quarter’s figure of $1.23.
OGS reported 2023 earnings of $4.14 per share compared with $4.08 in 2022, indicating a year-over-year increase of 1.4%.
Total Revenues
ONE Gas recorded revenues of $605.9 million, which missed the Zacks Consensus Estimate of $815.6 million by 25.7%. The top line also decreased 25.9% from $818.2 million reported in the prior-year period.
OGS reported total revenues of nearly $2.4 billion in 2023 compared with $2.6 billion in 2022, implying a year-over-year decrease of 8.1%.
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 reported quarter were 109.7 billion cubic feet (bcf), down 5.9% from the year-ago quarter’s level. ONE Gas served 2,263,000 customers during the reported quarter, up 0.8% year over year.
Total operating expenses were $231.2 million, up 10.1% from that recorded in the comparable period of 2022. This increase was due to a rise in Operations and maintenance (O&M) and depreciation and amortization expenses.
Operating income increased 3.4% year over year to $107.1 million.
ONE Gas incurred net interest expenses of $29.8 million, up 14.5% from the year-ago quarter’s level.
Financial Highlights
As of Dec 31, 2023, OGS had cash and cash equivalents of $18.8 million compared with $9.7 million as of Dec 31, 2022.
Long-term debt (excluding current maturities) was $1.88 billion as of Dec 31, 2023, compared with $2.35 billion as of Dec 31, 2022.
In 2023, cash provided by operating activities was $0.94 billion compared with $1.57 billion in the year-ago period.
2024 Guidance
ONE Gas expects 2024 earnings per share in the range of $3.70-$4. The Zacks Consensus Estimate for earnings is pegged at $3.87 per share, higher than the mid-point of the company’s guided range.
The company's 2024 earnings guidance includes the benefit of new rates and customer growth, offset by higher operating expenses, including employee-related and contractor costs, depreciation expense from capital investments and interest expense due to higher interest rates. It also assumes normal weather conditions.
OGS continues to expect capital expenditures, including asset removal costs, of approximately $750 million in 2024. The company aims to invest $4.25 billion over the next five years to further strengthen its operations.
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.
Other Releases
UGI Corporation (UGI - Free Report) reported first-quarter fiscal 2024 adjusted earnings of $1.20 per share, which surpassed the Zacks Consensus Estimate of $1.12 by 7.1%.
The Zacks Consensus Estimate for UGI’s 2024 earnings is pinned at $2.84 per share.
Spire (SR - Free Report) released first-quarter fiscal 2024 adjusted earnings of $1.47 per share, which beat the Zacks Consensus Estimate of $1.37 by 7.3%.
The Zacks Consensus Estimate for SR’s 2024 earnings is pegged at $4.34 per share, implying a year-over-year improvement of 7.16%.
Atmos Energy (ATO - Free Report) reported first-quarter fiscal 2024 adjusted earnings of $2.08 per share, which
lagged the Zacks Consensus Estimate of $2.09 by 0.5%.
The Zacks Consensus Estimate for ATO’s 2024 earnings is pegged at $6.57 per share, calling for a year-over-year improvement of 7.70%.