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ONE Gas (OGS) Q3 Earnings Surpass Estimates, Revenues Miss
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ONE Gas, Inc. (OGS - Free Report) posted third-quarter 2018 operating earnings of 31 cents per share, beating the Zacks Consensus Estimate of 28 cents by 10.7%.
However, earnings in the third quarter were lower than the year-ago level by 13.9%. Total natural gas sales volumes delivered were 11.6 Bcf in third-quarter 2018, down 2% from the same period last year, adversely impacting year-over-year earnings.
Total Revenues
Total revenues of $238.3 million lagged the Zacks Consensus Estimate of $251 million by 5.1%. Also, the figure declined 3.6% from $247.1 million in the prior-year quarter.
Total operating expenses in the reported quarter increased 5.2% to $150.8 million from the year-ago quarter, due to increase in operating and maintenance expenses.
In the third quarter, the company served 9,000 more customers than the comparable year-ago period, primarily due to an increase in the residential customer base.
Operating income in the reported quarter was down 19.8% year over year to $36.2 million.
The company incurred interest expenses of $12.4 million, up 7.6% from the year-ago period.
Financial Highlights
On Sep 30, 2018, ONE Gas had cash and cash equivalents of $12.43 million compared with $14.4 million as of Dec 31, 2017.
Long-term debt (excluding current maturities) was $893.9 million as of Sep 30, 2018, down from the Dec 31, 2017 level of $1,193.3 million.
The company’s cash flow from operating activities in the first nine months of 2018 was $436.8 million, up from $302.4 million recorded in the corresponding period of 2017.
Guidance
ONE Gas now expects its 2018 net income in the range of $167-$178 million and earnings per share within $3.15-$3.35. The guidance takes into consideration the positive impact of colder-than-normal weather and higher transport volumes.
The company now expects its 2018 capital expenditure in the range of $375-$390 million, with 70% of it directed toward system integrity and replacement projects.
Upcoming Releases
Atmos Energy Corp. (ATO - Free Report) is expected to report fourth-quarter fiscal 2018 earnings on Nov 7. The Zacks Consensus Estimate is pegged at 37 cents.
Chesapeake Utilities Corp. (CPK - Free Report) is expected to announce third-quarter 2018 results on Nov 8. The Zacks Consensus Estimate is pegged at 48 cents.
Just Energy is expected to report second-quarter fiscal 2019 earnings on Nov 7. The Zacks Consensus Estimate stands at 12 cents.
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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ONE Gas (OGS) Q3 Earnings Surpass Estimates, Revenues Miss
ONE Gas, Inc. (OGS - Free Report) posted third-quarter 2018 operating earnings of 31 cents per share, beating the Zacks Consensus Estimate of 28 cents by 10.7%.
However, earnings in the third quarter were lower than the year-ago level by 13.9%. Total natural gas sales volumes delivered were 11.6 Bcf in third-quarter 2018, down 2% from the same period last year, adversely impacting year-over-year earnings.
Total Revenues
Total revenues of $238.3 million lagged the Zacks Consensus Estimate of $251 million by 5.1%. Also, the figure declined 3.6% from $247.1 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. Quote
Quarterly Highlights
Total operating expenses in the reported quarter increased 5.2% to $150.8 million from the year-ago quarter, due to increase in operating and maintenance expenses.
In the third quarter, the company served 9,000 more customers than the comparable year-ago period, primarily due to an increase in the residential customer base.
Operating income in the reported quarter was down 19.8% year over year to $36.2 million.
The company incurred interest expenses of $12.4 million, up 7.6% from the year-ago period.
Financial Highlights
On Sep 30, 2018, ONE Gas had cash and cash equivalents of $12.43 million compared with $14.4 million as of Dec 31, 2017.
Long-term debt (excluding current maturities) was $893.9 million as of Sep 30, 2018, down from the Dec 31, 2017 level of $1,193.3 million.
The company’s cash flow from operating activities in the first nine months of 2018 was $436.8 million, up from $302.4 million recorded in the corresponding period of 2017.
Guidance
ONE Gas now expects its 2018 net income in the range of $167-$178 million and earnings per share within $3.15-$3.35. The guidance takes into consideration the positive impact of colder-than-normal weather and higher transport volumes.
The company now expects its 2018 capital expenditure in the range of $375-$390 million, with 70% of it directed toward system integrity and replacement projects.
Upcoming Releases
Atmos Energy Corp. (ATO - Free Report) is expected to report fourth-quarter fiscal 2018 earnings on Nov 7. The Zacks Consensus Estimate is pegged at 37 cents.
Chesapeake Utilities Corp. (CPK - Free Report) is expected to announce third-quarter 2018 results on Nov 8. The Zacks Consensus Estimate is pegged at 48 cents.
Just Energy is expected to report second-quarter fiscal 2019 earnings on Nov 7. The Zacks Consensus Estimate stands at 12 cents.
Zacks Rank
ONE Gas currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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