- and end with the description. Make sure figures are correctly included.
- Winter Storm Fern Performance:
Delivered 3 billion cubic feet of gas without supply disruptions, while increasing storage capacity to over 60 Bcf. - 2025 Full-Year Net Income: Net income rose to $264M ($4.37/share) vs. $223M ($3.91/share) in 2024, with 2026 adjusted guidance of $306M–$314M ($4.83–$4.95/share).
- Q4 2024 Adjusted Earnings: Adjusted net income of $90M ($1.48/share) vs. $78M ($1.35/share) in Q4 2023, with full-year adjusted net income at $271M ($4.48/share).
- Texas Rate Case Outcome: Final order approved a $14.4M revenue increase, 9.8% return on equity, and 59.9% equity ratio, with GRIP and PBR filings planned in Q1 2025.
- Kansas GSRS Filing Impact: Proposed legislation would increase GSRS filing by $2.55M to $1.35, including safety/system integrity expenditures but excluding corporate allocations.
Operational Highlights
The company's operational performance was impressive, particularly during Winter Storm Fern, where it delivered over 3 billion cubic feet of gas to customers without any supply disruptions. ONE Gas has also increased its storage capacity to over 60 Bcf and diversified its gas supply, reducing the impact of price fluctuations on customers. As Curtis Dinan noted, the company is "competitively advantaged in some situations due to assets we already have nearby to the opportunity."
Regulatory Developments
A significant development for ONE Gas is the proposed Kansas legislation, which would allow the company to include safety-related expenditures, system integrity work, and cybersecurity in its GSRS filing. This could result in a substantial increase in the filing, from $0.80 to $1.35, a $2.55 million increase. The company's Texas rate case outcome was also favorable, with a $14.4 million revenue increase and a 9.8% return on equity.
Valuation and Outlook
With a P/E Ratio of 19.51 and an EV/EBITDA of 7.8, ONE Gas appears to be reasonably valued. The company's Dividend Yield is 3.13%, which is attractive for income investors. Christopher Sighinolfi discussed the company's growth rate range, noting that they had previously guided to the high end of the range but this year to the midpoint. The company's guidance for 2026 assumes the latest Texas rate case outcome, and the cash component of the higher earnings is expected to be reflected in the GRIP filing.
Financial Metrics
ONE Gas' return on equity (ROE) is 8.14%, and its return on invested capital (ROIC) is 4.53%. The company's Net Debt / EBITDA ratio is 1.22, indicating a manageable level of debt. Overall, ONE Gas' strong operational performance, favorable regulatory developments, and reasonable valuation make it an attractive investment opportunity.