Earnings

ONE Gas raises first-quarter net income on new rates

The Tip Desk · July 14, 2026 · 2 min read

The natural gas distributor reported first-quarter net income of $128.7 million, up from $119.4 million a year earlier.

ONE Gas (OGS), the natural gas distributor, reported first-quarter net income of $128.7 million, or $2.04 a diluted share.

The company saw bottom-line growth despite a decline in total revenues, which fell to $831.7 million from $935.2 million in the first quarter of 2025. This divergence was driven by a combination of new rate structures and a drop in delivery volumes.

Adjusted net income rose to $133.4 million, or $2.11 a diluted share, compared to $120.1 million, or $1.99 a diluted share, in the prior-year period. Operating income followed a similar trajectory, rising to $189.6 million from $180.5 million.

Operating income was supported by a $27.3 million increase resulting from new rates. These gains offset $8.9 million in revenue declines caused by lower sales and transport volumes, as well as $6.8 million in higher employee-related costs. Total sales volumes delivered during the quarter fell to 59.9 Bcf from 79.3 Bcf in the first quarter of 2025.

Capital expenditures and asset removal costs decreased to $169.6 million from $177.7 million in the first quarter of 2025.

ONE Gas affirmed its 2026 financial guidance, expecting net income between $294 million and $302 million, or $4.65 to $4.77 a diluted share. The company expects adjusted net income to fall between $306 million and $314 million, or $4.83 to $4.95 a diluted share.

In February 2026, the company entered into an at-the-market equity distribution agreement to potentially sell common stock with an aggregate offering price of up to $225 million. The company also expanded its board of directors from eight to nine members with the appointment of Nickolas Stavropoulos on July 13, 2026.

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