ONE Gas Inc (OGS) Reports Q3 2023 Earnings, Narrows Full-Year Guidance
ONE Gas Inc (NYSE:OGS) reported Q3 2023 net income of $25.2 million, up from $23.7 million in the same period last year.
The company's year-to-date net income for 2023 stood at $160.5 million, compared to $154.7 million in the same period in 2022.
ONE Gas Inc (NYSE:OGS) narrowed its 2023 earnings guidance, with net income expected to be in the range of $227 million to $236 million.
The company declared a quarterly dividend of $0.65 per share, payable on Dec. 1, 2023.
ONE Gas Inc (NYSE:OGS) announced its third-quarter financial results on October 30, 2023. The company reported a net income of $25.2 million, or $0.45 per diluted share, compared to $23.7 million, or $0.44 per diluted share, in the third quarter of 2022. The year-to-date net income for 2023 was $160.5 million, or $2.87 per diluted share, compared to $154.7 million, or $2.85 per diluted share, in the same period last year.
Financial Highlights
ONE Gas reported operating income of $57.2 million in the third quarter of 2023, compared to $47.1 million in the same period in 2022. The increase primarily reflects an increase of $14.6 million from new rates and a decrease of $2.3 million due to lower outside service costs. However, these increases were offset by an increase of $7.5 million in labor and benefit costs.
The company also executed forward sale agreements for 1.38 million shares of common stock at an initial price of $73.67 per share, with settlement by Dec. 31, 2024. In October 2023, ONE Gas increased the capacity of its Credit Agreement to $1.2 billion from $1.0 billion.
Year-to-Date Financial Performance
Operating income for the nine-month 2023 period was $270.5 million, compared with $246.4 million in 2022. This primarily reflects an increase of $46.0 million from new rates and an increase of $4.4 million in residential sales due to net customer growth in Oklahoma and Texas. However, these increases were offset by an increase of $18.3 million in labor and benefits costs and an increase of $3.3 million in bad debt expense.
2023 Financial Guidance
ONE Gas narrowed its earnings guidance issued on Nov. 30, 2022, with 2023 net income and earnings per share expected to be in the range of $227 million to $236 million, and $4.06 to $4.22 per diluted share. Capital expenditures, including asset removal costs, are expected to be approximately $725 million in 2023.
Dividend Declaration
The board of directors declared a quarterly dividend of $0.65 per share ($2.60 annualized), payable on Dec. 1, 2023, to shareholders of record at the close of business on Nov. 15, 2023.
Explore the complete 8-K earnings release (here) from ONE Gas Inc for further details.
This article first appeared on GuruFocus.
