ONE Gas Beats Q2 Revenue, Raises 2026 Outlook on Rate Hikes and Customer Growth
OGS is trading near its 52-week low of $71.715 (7.8% above the low).
Summary
ONE Gas delivered a strong Q2, with revenue of $411.6M beating the $397.2M consensus by 3.6%, driven by $16.4M from new rates and $1.4M from customer growth in Oklahoma and Texas. Net income rose to $46.8M, and EPS hit $0.74. Management raised 2026 adjusted net income guidance to the upper half of the $306M-$314M range, implying a midpoint of $310M, and adjusted EPS to the upper half of $4.83-$4.95. The company also plans ~$800M in capital investments, including $230M for customer extensions, signaling confidence in continued expansion. Lower interest expense, down $3.8M due to cheaper commercial paper and Texas House Bill 4384, provided an additional tailwind. This follows a solid Q1 and recent board appointment of Nickolas Stavropoulos, reinforcing a positive operational trajectory. The stock, trading at 16x forward earnings versus 18x three months ago, may see further multiple expansion if execution continues.
At the time of this announcement, OGS was trading at $77.33 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $4.9B. The 52-week trading range was $71.72 to $90.78. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.