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ONE Gas Q3 Earnings Lag Estimates, Revenues Rise Y/Y

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ONE Gas, Inc. (OGS - Free Report) reported third-quarter 2024 operating earnings per share (EPS) of 34 cents, which lagged the Zacks Consensus Estimate of 41 cents by 17.1%. The figure also came in 24.4% lower than the year-ago quarter’s earnings of 45 cents per share.

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OGS’ Revenues
 

ONE Gas recorded revenues of $340.4 million, which missed the Zacks Consensus Estimate of $363 million by 6.3%. However, the top line increased 1.4% from $335.8 million in the prior-year quarter.

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 were 59.8 billion cubic feet, down 6.9% on a year-over-year basis. OGS served 2,272,000 customers, up 0.9% year over year.

Total operating expenses were $221.3 million, up 6.6% year over year. The upside was due to a rise in operations and maintenance, and depreciation and amortization expenses.

Operating income increased 3.9% year over year to $59.4 million.

OGS incurred net interest expenses of $39.1 million, up 40% on a year-over-year basis.

OGS’ Financial Highlights
 

As of Sept. 30, OGS had cash and cash equivalents of $18.8 million compared with $18.84 million as of Dec. 31, 2023.

Total long-term debt (excluding current maturities) was $2.38 billion as of Sept. 30, compared with $2.16 billion as of Dec 31. 2023.

Cash provided by operating activities in the first nine months of 2024 was $305.8 million compared with $842.5 million in the year-ago quarter.

Capital expenditures and asset removal costs were $197.7 million compared with $184.3 million in the year-earlier quarter.

OGS’ 2024 Guidance
 

Management raised and narrowed its financial guidance, with 2024 net income expected in the range of $219-$226 million compared with the previous range of $214-$231. Earnings per diluted share are expected in the range of $3.85-$3.95 per share compared with the previous range of $3.70-$4.00 per share. The Zacks Consensus Estimate for earnings is pegged at $3.86 per share, lower than the mid-point of the company’s guided range.

OGS continues to expect capital expenditures, including asset removal costs, of $750 million.

OGS’ Zacks Rank
 

Currently, ONE Gas carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases
 

Atmos Energy Corp. (ATO - Free Report) is scheduled to report fiscal fourth-quarter results on Nov. 6 after market close. The Zacks Consensus Estimate for earnings is pegged at 84 cents per share, which indicates a year-over-year improvement of 5%.

ATO’s long-term (three to five years) earnings growth rate is 7%. The Zacks Consensus Estimate for sales is pegged at $830.7 million, which indicates a year-over-year improvement of 41.4%.

National Fuel Gas Company (NFG - Free Report) is scheduled to report fiscal fourth-quarter results on Nov. 6 after market close. The Zacks Consensus Estimate for earnings is pegged at 83 cents per share, which indicates a year-over-year improvement of 6.4%.

NFG delivered an average earnings surprise of 9.79% in the last four quarters. The Zacks Consensus Estimate for sales is pegged at $482.5 million, which indicates a year-over-year improvement of 30.8%.

NewJersey Resources (NJR - Free Report) is scheduled to report fiscal fourth-quarter results on Nov. 25 after market close. The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, which indicates a year-over-year improvement of 196.7%.

The Zacks Consensus Estimate for sales is pegged at $407 million, which indicates a year-over-year improvement of 22.8%.


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