Analyst call and webcast scheduled tomorrow, Feb. 19 at 11 a.m. EST
TULSA, Okla., Feb. 18, 2026 /PRNewswire/ -- ONE Gas, Inc. $(OGS)$ today announced its fourth quarter and full year 2025 financial results, which include diluted earnings per share of $1.42 and $4.37, respectively. The Company also provided non--GAAP adjustments to both earnings and its 2026 financial guidance to capture the full impact of a regulatory mechanism intended to mitigate regulatory lag. Adjusted net income was $1.48 per diluted share for the fourth quarter, and $4.48 per diluted share for the full year 2025. For 2026, non--GAAP earnings are expected to range from $306 million to $314 million, or $4.83 to $4.95 per diluted share.
"Our team delivered strong operational and financial results in 2025, reflecting disciplined execution and a commitment to safely serving our communities," said Robert S. McAnnally, president and chief executive officer. "Looking ahead, we see meaningful opportunity in both residential and large-load growth, supporting long-term value creation and affordability for our customers."
FINANCIAL RESULTS & HIGHLIGHTS
-- Fourth quarter 2025 net income was $86.3 million, or $1.42 per diluted
share, compared with $77.0 million, or $1.34 per diluted share, in the
same period last year;
-- Fourth quarter 2025 adjusted net income was $89.7 million, or $1.48 per
diluted share, compared with $77.5 million, or $1.35 per diluted share,
in the same period last year;
-- Full year 2025 net income was $264.2 million, or $4.37 per diluted share,
compared with $222.9 million, or $3.91 per diluted share, in 2024;
-- Full year 2025 adjusted net income was $271.0 million, or $4.48 per
diluted share, compared with $224.8 million, or $3.94 per diluted share,
in 2024;
-- In December, the Company settled 2,633,700 million shares of our common
stock under forward contracts for net proceeds of $205.0 million;
-- Full year 2025 capital expenditures and asset removal costs were $759.5
million compared with $762.1 million in 2024; and
-- On Jan. 20, 2026, ONE Gas increased the dividend for the first quarter
2026 by 1 cent to $0.68 per share ($2.72 annualized), payable March 6,
2026, to shareholders of record at the close of business Feb. 20, 2026.
FOURTH QUARTER 2025 FINANCIAL PERFORMANCE
ONE Gas reported operating income of $139.7 million in the fourth quarter, compared with $124.3 million in the fourth quarter 2024, which primarily reflects:
-- an increase of $23.8 million from new rates; and
-- an increase of $1.3 million in residential sales due primarily to net
customer growth in Oklahoma and Texas.
The increases were partially offset by:
-- an increase of $4.2 million in employee-related costs, due in part to
annual salary increases implemented during the quarter;
-- an increase of $3.8 million in depreciation and amortization expense
primarily from additional capital investment; and
-- an increase of $3.3 million due to outside services, due in part to our
decision to execute some projects earlier than initially planned.
Weather was 22.7 percent warmer than normal for the three months ended Dec. 31, 2025. The impact on operating income was mitigated by weather normalization mechanisms.
Excluding interest related to KGSS-I securitized bonds, net interest expense decreased $2.9 million for the three months ending Dec. 31, 2025. The decrease in interest expense is due primarily to commercial paper borrowings at lower rates and the implementation of Texas House Bill 4384.
Income tax expense includes a credit for amortization of the regulatory liability associated with excess deferred income taxes $(EDIT)$ of $5.6 million and $12.3 million for the three months ended Dec. 31, 2025, and 2024, respectively.
Capital expenditures and asset removal costs were $184.1 million for the fourth quarter 2025 compared with $190.4 million in the same period last year, primarily representing expenditures for system integrity and extension of service to new areas.
FULL YEAR 2025 FINANCIAL PERFORMANCE
Operating income for the twelve-month 2025 period was $457.5 million, compared with $399.0 million in 2024, which primarily reflects:
-- an increase of $116.0 million from new rates; and
-- an increase of $6.6 million in residential sales due primarily to net
customer growth in all three states.
These increases were partially offset by:
-- an increase of $20.6 million in depreciation expense due to additional
capital expenditures being placed in service;
-- an increase of $17.0 million in employee-related costs;
-- an increase of $14.7 million in ad-valorem taxes; and
-- a carrying charge of $2.9 million refunded to Oklahoma customers from the
settlement of a disputed gas purchase invoice.
Excluding interest related to KGSS-I securitized bonds, net interest expense decreased $3.0 million for the twelve months ended Dec. 31, 2025. The decrease in interest expense is due primarily to commercial paper borrowings at lower rates and the implementation of Texas House Bill 4384.
Income tax expense includes a credit for amortization of the regulatory liability associated with EDIT of $17.6 million and $25.7 million for the twelve months ended Dec. 31, 2025, and 2024, respectively.
Capital expenditures and asset removal costs were $759.5 million for the twelve-month 2025 period compared with $762.1 million in the same period last year.
In December, the Company settled 2,633,700 million shares of our common stock under forward contracts for net proceeds of $205.0 million.
REGULATORY ACTIVITIES UPDATE
In June 2025, Texas Gas Service filed a rate case for customers in the Central-Gulf, West-North, and Rio Grande Valley service areas. The Railroad Commission of Texas ultimately approved a $14.4 million revenue increase and the consolidation of all service areas into a single division, based on a 59.9% equity ratio and a 9.8% ROE. New rates became effective January 27, 2026.
2026 FINANCIAL GUIDANCE
On Dec. 1, 2025, ONE Gas announced that its 2026 net income is expected to be in the range of $294 million to $302 million, with earnings per diluted share of $4.65 to $4.77.
The Company expects 2026 adjusted net income to be in the range of $306 million to $314 million, with adjusted net income per diluted share of $4.83 to $4.95.
ONE Gas expects long--term adjusted net income growth of 7 to 9 percent and adjusted net income per diluted share growth of 5 to 7 percent, consistent with its established five--year financial outlook. These growth rates are based on adjusted 2025 actual results, including adjusted net income of $271 million and adjusted net income per diluted share of $4.48.
Capital investments, including asset removal costs, are expected to be approximately $800 million in 2026, primarily targeted for system integrity and replacement projects. Capital investments for extensions to new customers are expected to be approximately $230 million of the $800 million.
EARNINGS CONFERENCE CALL AND WEBCAST
The ONE Gas executive management team will host a conference call on Thursday, February 19, 2026, at 11 a.m. Eastern Standard Time (10 a.m. Central Standard Time). The call also will be carried live on the ONE Gas website.
To participate in the telephone conference call, dial 833-470-1428, passcode 246604, or log on to www.onegas.com/investors and select Events and Presentations.
If you are unable to participate in the conference call or the webcast, a replay will be available on the ONE Gas website, www.onegas.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 866-813-9403, passcode 437369.
NON-GAAP DISCLOSURE STATEMENT
This press release includes financial results and guidance for ONE Gas with respect to adjusted net income and adjusted net income per share, which are non-GAAP financial measures as defined by the Securities and Exchange Commission. Adjusted net income and adjusted net income per share are calculated as GAAP net income plus the deferral of an equity portion of a carrying cost attributable to shareholders' investment capitalized for regulatory purposes but not for financial reporting purposes. These carrying costs relate to property, plant and equipment that has been placed in service, but not yet reflected in base rates. Adjusted net income and adjusted net income per share should not be considered in isolation or as a substitute for GAAP net income or GAAP earnings per share.
Management believes these non--GAAP measures provide useful information because they offer a more complete view of our overall regulatory economics, reflect the period-specific effects of certain regulatory mechanisms designed to mitigate regulatory lag associated with property, plant and equipment placed in service prior to regulatory action, and reflect the impact of regulatory timing differences that arise under the Company's rate-setting framework. These adjustments, net of applicable tax effects, are expected to recur as a result of the Company's regulatory framework and are a consistent part of our earnings profile. A reconciliation of the Company's GAAP net income and GAAP earnings per share to adjusted net income and adjusted net income per share is provided in the Appendix.
ONE Gas, Inc. (NYSE: OGS) is a 100% regulated natural gas utility, and trades on the New York Stock Exchange and the NYSE Texas under the symbol "OGS." ONE Gas is included in the S&P MidCap 400 Index and is one of the largest natural gas utilities in the United States.
Headquartered in Tulsa, Oklahoma, ONE Gas provides a reliable and affordable energy choice to more than 2.3 million customers in Kansas, Oklahoma and Texas. Its divisions include Kansas Gas Service, the largest natural gas distributor in Kansas; Oklahoma Natural Gas, the largest in Oklahoma; and Texas Gas Service, the third largest in Texas, in terms of customers.
For more information and the latest news about ONE Gas, visit onegas.com and follow its social channels: @ONEGas, Facebook, LinkedIn and YouTube.
Some of the statements contained and incorporated in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The forward-looking statements relate to our anticipated financial performance, liquidity, management's plans and objectives for our future operations, our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential, " "scheduled," "likely," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements, which are applicable only as of the date of this news release. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, costs, liquidity, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:
-- our ability to recover costs, income taxes and amounts equivalent to the
cost of property, plant and equipment, regulatory assets and our allowed
rate of return in our regulated rates or other recovery mechanisms;
-- cyber-attacks, which, according to experts, continue to increase in
volume and sophistication, or breaches of technology systems that could
disrupt our operations or result in the loss or exposure of confidential
or sensitive customer, employee, vendor, counterparty, or Company
information; further, increased remote working arrangements have required
enhancements and modifications to our information technology
infrastructure (e.g. Internet, Virtual Private Network, remote
collaboration systems, etc.), and any failures of the technologies,
including third-party service providers, that facilitate working remotely
could limit our ability to conduct ordinary operations or expose us to
increased risk or effect of an attack;
-- our ability to manage our operations and maintenance costs;
-- changes in regulation of natural gas distribution services, particularly
those in Oklahoma, Kansas and Texas;
-- the economic climate and, particularly, its effect on the natural gas
requirements of our residential and commercial customers;
-- the length and severity of a pandemic or other health crisis which could
significantly disrupt or prevent us from operating our business in the
ordinary course for an extended period;
-- competition from alternative forms of energy, including, but not limited
to, electricity, solar power, wind power, geothermal energy and biofuels;
-- adverse weather conditions and variations in weather, including seasonal
effects on demand and/or supply, the occurrence of severe storms in the
territories in which we operate, climate change, and the related effects
on supply, demand, and costs;
-- indebtedness could make us more vulnerable to general adverse economic
and industry conditions, limit our ability to borrow additional funds
and/or place us at competitive disadvantage compared with competitors;
-- our ability to secure reliable, competitively priced and flexible natural
gas transportation, storage, and supply, including decisions by natural
gas producers to reduce production or shut-in producing natural gas wells
and expiration of existing supply and transportation and storage
arrangements that are not replaced with contracts with similar terms and
pricing;
-- our ability to complete necessary or desirable expansion or
infrastructure development projects, which may delay or prevent us from
serving our customers or expanding our business;
-- operational and mechanical hazards or interruptions;
-- adverse labor relations;
-- the effectiveness of our strategies to reduce earnings lag, revenue
protection strategies and risk mitigation strategies, which may be
affected by risks beyond our control such as commodity price volatility,
counterparty performance or creditworthiness and interest rate risk;
-- the capital-intensive nature of our business, and the availability of and
access to, in general, funds to meet our debt obligations prior to or
when they become due and to fund our operations and capital expenditures,
either through (i) cash on hand, (ii) operating cash flow, or (iii)
access to the capital markets and other sources of liquidity;
-- our ability to obtain capital on commercially reasonable terms, or on
terms acceptable to us, or at all;
-- limitations on our operating flexibility, earnings and cash flows due to
restrictions in our financing arrangements;
-- cross-default provisions in our borrowing arrangements, which may lead to
our inability to satisfy all of our outstanding obligations in the event
of a default on our part;
-- changes in the financial markets during the periods covered by the
forward-looking statements, particularly those affecting the availability
of capital and our ability to refinance existing debt and fund
investments and acquisitions to execute our business strategy;
-- actions of rating agencies, including the ratings of debt, general
corporate ratings and changes in the rating agencies' ratings criteria;
-- changes in inflation and interest rates;
-- our ability to recover the costs of upstream transportation, storage, and
natural gas purchased for our customers and any related financing
required to support our purchase of natural gas supply;
-- impact of potential impairment charges;
-- volatility and changes in markets for natural gas and our ability to
secure additional and sufficient liquidity on reasonable commercial terms
to cover costs associated with such volatility;
-- possible loss of local distribution company franchises or other adverse
effects caused by the actions of municipalities;
-- payment and performance by counterparties and customers as contracted and
when due, including our counterparties maintaining ordinary course terms
of supply and payments;
-- changes in existing or the addition of new environmental, safety, tax,
cybersecurity and other laws or regulations to which we and our
subsidiaries are subject, including those that may require significant
expenditures, significant increases in operating costs or, in the case of
noncompliance, substantial fines or penalties;
-- the effectiveness of our risk-management policies and procedures, and
employees violating our risk-management policies;
-- the uncertainty of estimates, including accruals and costs of
environmental remediation;
-- advances in technology, including technologies that increase efficiency
or that improve electricity's competitive position relative to natural
gas;
-- population growth rates and changes in the demographic patterns of the
markets we serve in Oklahoma, Kansas and Texas, and economic conditions
in these areas;
-- acts of nature and naturally occurring disasters;
-- political unrest and the potential effects of threatened or actual
terrorism and war;
-- the sufficiency of insurance coverage to cover losses;
-- the effects of our strategies to reduce tax payments;
-- changes in accounting standards;
-- changes in corporate governance standards;
-- existence of material weaknesses in our internal controls;
-- our ability to comply with all covenants in our indentures and the ONE
Gas Credit Agreement, a violation of which, if not cured in a timely
manner, could trigger a default of our obligations;
-- our ability to attract and retain talented employees, management and
directors, and shortage of skilled-labor;
-- unexpected increases in the costs of providing health care benefits,
along with pension and postemployment health care benefits, as well as
declines in the discount rates on, declines in the market value of the
debt and equity securities of, and increases in funding requirements for,
our defined benefit plans; and
-- our ability to successfully complete merger, acquisition or divestiture
plans, regulatory or other limitations imposed as a result of a merger,
acquisition or divestiture, and the success of the business following a
merger, acquisition or divestiture.
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our Annual Report. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
APPENDIX
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ONE Gas, Inc.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Twelve Months Ended
December 31, December 31,
2025 2024 2025 2024
-------------- ------------------- ------------------- ---------------------- ----------------------
(Thousands of dollars, except per share amounts)
Total revenues $ 689,372 $ 630,703 $ 2,427,428 $ 2,083,558
Cost of natural
gas 291,895 263,740 998,913 778,333
Operating
expenses
Operations and
maintenance 155,017 144,853 558,497 530,256
Depreciation
and
amortization 79,305 75,452 317,256 296,699
General taxes 23,423 22,348 95,295 79,371
--------------- ------------------- ------------------- ---------------------- ----------------------
Total operating
expenses 257,745 242,653 971,048 906,326
--------------- ------------------- ------------------- ---------------------- ----------------------
Operating
income 139,732 124,310 457,467 398,899
--------------- ------------------- ------------------- ---------------------- ----------------------
Other income,
net 1,348 105 6,801 7,572
Interest
expense, net (36,460) (39,760) (142,809) (147,235)
--------------- ------------------- ------------------- ---------------------- ----------------------
Income before
income taxes 104,620 84,655 321,459 259,236
--------------- ------------------- ------------------- ---------------------- ----------------------
Income taxes (18,314) (7,633) (57,235) (36,386)
--------------- ------------------- ------------------- ---------------------- ----------------------
Net income $ 86,306 $ 77,022 $ 264,224 $ 222,850
=============== =================== =================== ====================== ======================
Earnings per
share
Basic $ 1.43 $ 1.35 $ 4.39 $ 3.92
Diluted $ 1.42 $ 1.34 $ 4.37 $ 3.91
=============== =================== =================== ====================== ======================
Average shares
(thousands)
Basic 60,272 57,000 60,161 56,826
Diluted 60,777 57,415 60,513 57,033
=============== =================== =================== ====================== ======================
Dividends
declared per
share of
stock $ 0.67 $ 0.66 $ 2.68 $ 2.64
=============== =================== =================== ====================== ======================
APPENDIX
----------------------------------------------------------------------------
ONE Gas, Inc.
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2025 2024
------------------------------------ ------------------ ------------------
Assets (Thousands of dollars)
Property, plant and equipment
Property, plant and equipment $ 9,734,150 $ 9,124,134
Accumulated depreciation and
amortization 2,611,952 2,478,261
------------------------------------ ------------------ ------------------
Net property, plant and equipment 7,122,198 6,645,873
------------------------------------ ------------------ ------------------
Current assets
Cash and cash equivalents 10,620 57,995
Restricted cash and cash
equivalents 23,107 20,542
------------------------------------ ------------------ ------------------
Total cash, cash equivalents and
restricted cash and cash
equivalents 33,727 78,537
Accounts receivable, net 461,631 408,448
Materials and supplies 97,595 91,662
Income tax receivable 55,552 53,624
Natural gas in storage 176,451 161,184
Regulatory assets 49,504 101,210
Other current assets 41,424 35,216
------------------------------------ ------------------ ------------------
Total current assets 915,884 929,881
------------------------------------ ------------------ ------------------
Goodwill and other assets
Regulatory assets 256,225 278,006
Securitized intangible asset, net 233,786 265,951
Goodwill 157,953 157,953
Pension and other postemployment
benefits 47,012 42,882
Other assets 120,026 105,025
------------------------------------ ------------------ ------------------
Total goodwill and other assets 815,002 849,817
------------------------------------ ------------------ ------------------
Total assets $ 8,853,084 $ 8,425,571
==================================== ================== ==================
APPENDIX
----------------------------------------------------------------------------
ONE Gas, Inc.
CONSOLIDATED BALANCE SHEETS
(Continued)
December 31, December 31,
2025 2024
---------------------------- ---------------------- ----------------------
Equity and Liabilities (Thousands of dollars)
Equity and long-term debt
Common stock, $0.01 par
value: authorized
250,000,000 shares;
issued and outstanding
62,692,392 shares at
December 31, 2025;
issued and outstanding
59,876,861 shares at
December 31, 2024 $ 627 $ 599
Paid-in capital 2,530,137 2,294,469
Retained earnings 909,355 809,606
Accumulated other
comprehensive income
(loss) 4 (126)
Total equity 3,440,123 3,104,548
---------------------------- ---------------------- ----------------------
Other long-term debt,
excluding current
maturities, net of
issuance costs 2,133,018 2,131,718
Securitized utility tariff
bonds, excluding current
maturities, net of
issuance costs 223,020 253,568
---------------------------- ---------------------- ----------------------
Total long-term debt,
excluding current
maturities, net of
issuance costs 2,356,038 2,385,286
---------------------------- ---------------------- ----------------------
Total equity and long-term
debt 5,796,161 5,489,834
---------------------------- ---------------------- ----------------------
Current liabilities
Current maturities of other
long-term debt, net of
issuance costs 249,674 14
Current maturities of
securitized utility tariff
bonds, net of issuance
costs 30,566 28,956
Notes payable 737,400 914,600
Accounts payable 222,102 261,321
Accrued taxes other than
income 75,568 75,608
Regulatory liabilities 57,277 22,525
Customer deposits 52,871 56,243
Other current liabilities 106,400 99,009
---------------------------- ---------------------- ----------------------
Total current liabilities 1,531,858 1,458,276
---------------------------- ---------------------- ----------------------
Deferred credits and other
liabilities
Deferred income taxes 963,874 891,738
Regulatory liabilities 451,620 467,563
Other deferred credits 109,571 118,160
---------------------------- ---------------------- ----------------------
Total deferred credits and
other liabilities 1,525,065 1,477,461
---------------------------- ---------------------- ----------------------
Commitments and
contingencies
---------------------------- ---------------------- ----------------------
Total liabilities and
equity $ 8,853,084 $ 8,425,571
============================ ====================== ======================
APPENDIX
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ONE Gas, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
2025 2024
---------------------------- ---------------------- ----------------------
(Thousands of dollars)
Operating activities
Net income $ 264,224 $ 222,850
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation and
amortization 317,256 296,699
Deferred income taxes 49,507 106,522
Share-based compensation
expense 14,791 13,733
Provision for doubtful
accounts 8,207 6,705
Proceeds from government
securitization of winter
weather event costs -- --
Changes in assets and
liabilities:
Accounts receivable (61,390) (67,289)
Materials and supplies (5,933) (14,013)
Income tax receivable (1,928) (49,677)
Natural gas in storage (15,267) 25,913
Asset removal costs (52,268) (58,952)
Accounts payable (35,397) (15,014)
Accrued taxes other than
income (40) 6,815
Customer deposits (3,372) (5,944)
Regulatory assets and
liabilities - current 68,397 (90,829)
Regulatory assets and
liabilities -
noncurrent 36,660 19,354
Other assets and
liabilities - current (708) (17,091)
Other assets and
liabilities -
noncurrent (3,906) (11,371)
---------------------------- ---------------------- ----------------------
Cash provided by
operating activities 578,833 368,411
---------------------------- ---------------------- ----------------------
Investing activities
Capital expenditures (707,226) (703,165)
Other investing
expenditures (12,724) (10,402)
Other investing receipts 4,626 6,072
---------------------------- ---------------------- ----------------------
Cash used in investing
activities (715,324) (707,495)
---------------------------- ---------------------- ----------------------
Financing activities
Borrowings (repayments) of
notes payable, net (177,200) 826,100
Issuance of other long-term
debt, net of premiums and
discounts 250,000 253,467
Long-term debt financing
costs (432) (2,193)
Repayment of other
long-term debt (15) (773,013)
Repayment of securitized
utility tariff bonds (29,493) (27,939)
Issuance of common stock 212,183 252,379
Dividends paid (160,705) (149,456)
Tax withholdings related to
net share settlements of
stock compensation (2,657) (1,111)
---------------------------- ---------------------- ----------------------
Cash provided by
financing activities 91,681 378,234
---------------------------- ---------------------- ----------------------
Change in cash, cash
equivalents, restricted
cash and restricted cash
equivalents (44,810) 39,150
Cash, cash equivalents,
restricted cash and
restricted cash
equivalents at beginning
of period 78,537 39,387
---------------------------- ---------------------- ----------------------
Cash, cash equivalents,
restricted cash and
restricted cash
equivalents at end of
period $ 33,727 $ 78,537
============================ ====================== ======================
Supplemental cash flow
information:
Cash paid for interest, net
of amounts capitalized $ 138,987 $ 148,987
Cash paid for other state
income taxes $ 540 $ 366
Cash received for state
income taxes $ (1,523) $ (4,546)
Cash paid (received) for
federal income taxes $ 10,113 $ (16,280)
============================ ====================== ======================
APPENDIX
The following table reconciles the Company's GAAP net income and GAAP earnings per share to adjusted net income and adjusted net income per share:
ONE Gas, Inc.
Three Months Ended Twelve Months Ended
December 31, December 31,
2025 2024 2025 2024
------------ ------------------- ------------------- ---------------------- ----------------------
(Thousands of dollars, except per share amounts)
Net income -
GAAP $ 86,306 $ 77,022 $ 264,224 $ 222,850
Other income
- deferred
carrying
cost(a) 3,359 458 6,745 1,986
Income
taxes -- -- -- --
------------ ------------------- ------------------- ---------------------- ----------------------
Adjusted net
income -
non-GAAP $ 89,665 $ 77,480 $ 270,969 $ 224,836
============= =================== =================== ====================== ======================
Earnings per
share -
GAAP
Basic $ 1.43 $ 1.35 $ 4.39 $ 3.92
Diluted $ 1.42 $ 1.34 $ 4.37 $ 3.91
============= =================== =================== ====================== ======================
Adjusted net
income per
share -
non-GAAP
Basic $ 1.49 $ 1.36 $ 4.50 $ 3.96
Diluted $ 1.48 $ 1.35 $ 4.48 $ 3.94
============= =================== =================== ====================== ======================
Average
shares
(thousands)
Basic 60,272 57,000 60,161 56,826
Diluted 60,777 57,415 60,513 57,033
============= =================== =================== ====================== ======================
(a) The allowance for earnings on shareholders' investment capitalized for
regulatory purposes but not for financial reporting purposes applied to
property, plant and equipment placed in service, but not yet reflected in base
rates as authorized by our regulators or state law. This increases book income
but is non-taxable, creating a permanent tax difference.
ONE Gas, Inc.
2026 Financial Guidance: Reconciliation of non-GAAP to GAAP:
Low Mid High
------------ ------------------- ------------------- ----------------------
(Thousands of dollars, except per share amounts)
Net income -
GAAP $ 294,000 $ 298,000 $ 302,000
Other income
- deferred
carrying
cost(a) 11,890 11,919 12,000
Income
taxes -- -- --
------------ ------------------- ------------------- ----------------------
Adjusted net
income -
non-GAAP $ 305,890 $ 309,919 $ 314,000
============= =================== =================== ======================
Earnings per
share -
GAAP
Basic $ 4.67 $ 4.73 $ 4.79
Diluted $ 4.65 $ 4.71 $ 4.77
============= =================== =================== ======================
Adjusted net
income per
share -
non-GAAP
Basic $ 4.86 $ 4.92 $ 4.98
Diluted $ 4.83 $ 4.89 $ 4.95
============= =================== =================== ======================
Average
shares
(thousands)
Basic 62,995 62,995 62,995
Diluted 63,350 63,350 63,350
============= =================== =================== ======================
(a) The allowance for earnings on shareholders' investment capitalized for
regulatory purposes but not for financial reporting purposes applied to
property, plant and equipment placed in service, but not yet reflected in base
rates as authorized by our regulators or state law. This increases book income
but is non-taxable, creating a permanent tax difference.
APPENDIX
ONE Gas, Inc.
KGSS-I SECURITIZATION
In November 2022, Kansas Gas Service Securitization I, L.L.C. (KGSS-I) issued $336 million of securitized utility tariff bonds. KGSS-I used the proceeds from the issuance to purchase the Securitized Utility Tariff Property from Kansas Gas Service, pay for debt issuance costs, and reimburse Kansas Gas Service for upfront securitization costs paid on behalf of KGSS-I.
Revenues for the three months ended December 31, 2025, include $11.4 million associated with KGSS-I, which is offset by $7.8 million in operating and amortization expense and $3.6 million in interest expense, net. Compared to the same three month period last year, revenues increased $0.7 million and interest expense, net, decreased $0.4 million , offset by a $1.1 million increase in operating and amortization expense.
Revenues for the twelve months ended December 31, 2025, include $47.4 million associated with KGSS-I, which is offset by $32.6 million in operating and amortization expense and $14.7 million in interest expense, net. Compared to the same twelve month period last year, revenues increased $3.1 million and interest expense, net, decreased $1.5 million, offset by a $4.5 million increase in amortization and operating expense.
The following table summarizes the impact of KGSS-I on the consolidated balance sheets, for the periods indicated:
December 31, December 31,
2025 2024
------------------------------------ ------------------ ------------------
(Thousands of dollars)
Restricted cash and cash equivalents $ 23,107 $ 20,542
Accounts receivable 4,463 4,659
Securitized intangible asset, net 233,786 265,951
------------------------------------ ------------------ ------------------
Total assets $ 261,356 $ 291,152
==================================== ================== ==================
Current maturities of securitized
utility tariff bonds, net of
issuance costs $ 30,566 $ 28,956
Accounts payable 136 319
Accrued interest 5,894 6,568
Securitized utility tariff bonds,
excluding current maturities, net
of discounts and issuance costs
$4.3 million and $4.8 million, as
of December 31, 2025 and December
31, 2024, respectively 223,020 253,568
Paid-in capital 1,680 1,681
Retained earnings 60 60
------------------------------------ ------------------ ------------------
Total liabilities and equity $ 261,356 $ 291,152
==================================== ================== ==================
The following table summarizes the impact of KGSS-I on the consolidated statements of income, for the periods indicated:
Three Months Ended Year Ended
December 31, December 31,
2025 2024 2025 2024
------------- ---------------------- ---------------------- ----------------- -------------------
(Thousands of dollars)
Operating
revenues $ 11,387 $ 10,649 $ 47,446 $ 44,390
Operating
expense (110) (111) (442) (443)
Amortization
expense (7,688) (6,559) (32,164) (27,668)
Interest
income 125 132 551 671
Interest
expense (3,678) (4,075) (15,246) (16,806)
------------- ---------------------- ---------------------- ----------------- -------------------
Income
before
income
taxes 36 36 145 144
------------- ---------------------- ---------------------- ----------------- -------------------
Income taxes -- -- -- (26)
------------- ---------------------- ---------------------- ----------------- -------------------
Net income $ 36 $ 36 $ 145 $ 118
============= ====================== ====================== ================= ===================
APPENDIX
------------------------------------------------------------------
ONE Gas, Inc.
INFORMATION AT A GLANCE
Three Months Ended Year Ended
December 31, December 31,
(Unaudited) 2025 2024 2025 2024
---------------------- ------------ -------- ------- -------
(Millions of dollars)
Natural gas sales $ 629.1 $ 573.4 $2,196.3 $1,864.1
Transportation
revenues 39.1 37.4 144.9 138.7
Securitization
customer charges 11.4 10.7 47.4 44.4
Other revenues 9.8 9.2 38.8 36.4
---------------------- -------- ------- ------- -------
Total revenues $ 689.4 $ 630.7 $2,427.4 $2,083.6
Cost of natural gas 291.9 263.7 998.9 778.3
Operating costs 178.4 167.3 653.8 609.6
Depreciation and
amortization 79.3 75.5 317.3 296.7
---------------------- -------- ------- ------- -------
Operating income $ 139.8 $ 124.2 $ 457.4 $ 399.0
====================== ======== ======= ======= =======
Net income $ 86.3 $ 77.0 $ 264.2 $ 222.9
Capital expenditures
and asset removal
costs $ 184.1 $ 190.4 $ 759.5 $ 762.1
Volumes (Bcf)
----------------------
Natural gas sales
Residential 34.9 33.7 114.1 104.1
Commercial and
industrial 11.2 10.8 40.3 36.9
Other 0.8 0.6 3.0 2.1
Total sales volumes
delivered 46.9 45.1 157.4 143.1
Transportation 56.8 57.3 216.9 221.0
Total volumes
delivered 103.7 102.4 374.3 364.1
Average number of
customers (in
thousands)
----------------------
Residential 2,115 2,101 2,118 2,103
Commercial and
industrial 161 162 163 163
Other 3 3 3 3
Transportation 11 12 11 12
Total customers 2,290 2,277 2,295 2,281
Heating Degree Days
----------------------
Actual degree days 2,921 2,864 8,995 7,991
Normal degree days 3,777 3,784 9,730 9,728
Percent colder
(warmer) than normal
weather (23) % (24) % (8) % (18) %
Statistics by State
----------------------
Oklahoma
----------------------
Average number of
customers (in
thousands) 929 924 931 924
Actual degree days 1,002 985 3,082 2,783
Normal degree days 1,320 1,320 3,356 3,359
Percent colder
(warmer) than normal
weather (24) % (25) % (8) % (17) %
Kansas
----------------------
Average number of
customers (in
thousands) 651 648 653 651
Actual degree days 1,520 1,433 4,463 3,863
Normal degree days 1,807 1,791 4,728 4,690
Percent colder
(warmer) than normal
weather (16) % (20) % (6) % (18) %
Texas
----------------------
Average number of
customers (in
thousands) 710 706 711 706
Actual degree days 399 446 1,450 1,345
Normal degree days 650 673 1,646 1,679
Percent colder
(warmer) than normal
weather (39) % (34) % (12) % (20) %
Analyst Contact: Erin Dailey
918-947-7441
Media Contact: Leah Harper
918-947-7123
View original content to download multimedia:https://www.prnewswire.com/news-releases/one-gas-announces-fourth-quarter-and-full-year-2025-financial-results-releases-non-gaap-adjusted-financial-guidance-302691813.html
SOURCE ONE Gas, Inc.
(END) Dow Jones Newswires
February 18, 2026 16:20 ET (21:20 GMT)