ONE Gas (OGS) Q3 2026 earnings summary

Executive summary

• Q3 adjusted EPS rose 13% YoY to $0.53 from $0.47; 2026 adjusted EPS guidance increased for the second time to $4.95-$5.01.

• Q3 and 9M earnings gains reflected new rates and customer growth despite warmer weather and lower 9M volumes.

• Large-load opportunities are expanding across the service territories, with eight projects in late-stage development and 20 under early evaluation.

Financial highlights

• Q3 revenue was $391.3M versus $379.1M; operating income rose to $77.4M from $65.4M, and net income increased to $31.2M from $26.5M.

• Q3 adjusted net income was $33.5M versus $28.6M; adjusted diluted EPS was $0.53 versus $0.47.

• 9M revenue declined to $1.635B from $1.738B, while operating income rose to $349.6M from $317.7M and net income to $206.7M from $177.9M.

• 9M adjusted net income was $218.9M, or $3.47 per diluted share, versus $181.3M and $3.00.

• Q3 O&M expense was flat YoY despite locate volumes up more than 7%, higher fuel costs and employee-related expenses.

Outlook and guidance

• FY26 adjusted net income guidance increased to $313M-$317M from $310M-$314M; adjusted diluted EPS guidance rose to $4.95-$5.01 from $4.89-$4.95.

• FY26 capital expenditures and asset removal costs are expected to total ~$800M, including ~$230M for customer extensions.

• Moderate O&M growth is expected in Q4; the long-term annual O&M growth expectation remains 3%-4%.

• Two large-load projects are expected in service in Q4 and contribute a full year of revenue in 2027; Texas LNG is expected online in Q1 2027.

• 2027 earnings growth was already expected below trend, reflecting the absence of Oklahoma PBR and a longer general rate-case process.