ONE Gas (OGS) Q4 2023 earnings summary

Executive summary

• FY 2023 net income was $231.2 million, or $4.14 diluted EPS, versus $221.7 million and $4.08 in 2022; results were in line with guidance.

• Operating income rose to $377.6 million from $350.0 million, primarily on new rates and customer growth, partly offset by higher employee costs and depreciation.

Financial highlights

• Q4 net income was $70.7 million, or $1.27 diluted EPS, versus $67.0 million and $1.23 in Q4 2022.

• FY revenue was $2.372 billion versus $2.578 billion; operating income was $377.6 million versus $350.0 million.

• FY other income, net increased $13.7 million, including a $12.0 million higher return on investments in nonqualified employee benefit plans.

• FY EDIT regulatory-liability amortization credits included in income tax expense were $22.4 million, versus $18.0 million in 2022.

Outlook and guidance

• 2024 net income guidance is $214 million–$231 million, or $3.70–$4.00 diluted EPS.

• 2024 capital expenditures, including asset removal costs, are expected to be ~$750 million; nearly 75% is targeted to system integrity and replacement, with ~$170 million for customer extensions.