ONE Gas Q3 revenue misses analyst expectations, net income rises

Overview

• ONE Gas Q3 revenue missed analyst expectations

• Net income for Q3 increased to $26.5 mln from $19.3 mln in 2024

Outlook

• Company narrows 2025 net income guidance to $262 mln-$266 mln

• ONE Gas expects 2025 EPS of $4.34-$4.40

• Capital expenditures for 2025 still projected at $750 mln

Result Drivers

• NEW RATES - Co attributes $19.2 mln increase in Q3 operating income to new rates

• CUSTOMER GROWTH - Net customer growth in Oklahoma and Texas contributed $1.4 mln to Q3 residential sales

• EXPENSE INCREASES - Higher depreciation, taxes, and employee costs partially offset income gains

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the natural gas utilities peer group is "buy"

• Wall Street's median 12-month price target for ONE Gas Inc is $76.50, about 4.8% below its October 31 closing price of $80.19

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

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