ONE Gas Inc. OGS reported fourth-quarter 2020 earnings of $1.09 per share, beating the Zacks Consensus Estimate of $1.06 by 2.8%.
The bottom line also improved 13.5% from the year-ago earnings, primarily owing to new rates, higher sales volumes in Kansas and Oklahoma, along with residential customer growth.
The company recorded revenues of $484.2 million for the fourth quarter, which surpassed the Zacks Consensus Estimate of $461 million by 5.1%. The top line also improved 6.9% from the year-ago level.
ONE Gas, Inc. Price, Consensus and EPS Surprise
ONE Gas, Inc. price-consensus-eps-surprise-chart | ONE Gas, Inc. Quote
Residential natural gas sales volume for the fourth quarter was 42.9 billion cubic feet (Bcf), up 2.6% year over year. Total volumes delivered in the same period were 113.8 Bcf, down 0.5% from the year-ago period due to lower commercial and industrial sales volume.
Total operating expenses for the reported quarter increased 6.1% from the year-ago figure to $190.9 million.
Operating income for the reported quarter improved 3.9% year over year to $85.1 million.
For fourth-quarter 2020, ONE Gas’ customer base rose 1.4% from the year-ago period, primarily due to additions to the residential customer group.
It incurred net interest expenses of $15.4 million, down 1.9% from the prior-year figure.
Capital expenditures and asset removal costs were $134.3 million for the reported quarter compared with $121.2 million in the year-ago period, primarily due to increased system integrity activities and extension of services to new areas.
As of Dec 31, 2020, ONE Gas had cash and cash equivalents of $8 million compared with $17.9 million at 2019-end.
Long-term debt (excluding current maturities) was $1,582.2 million as of Dec 31, 2020 compared with $1,286.1 million in the corresponding period of 2019.
Cash provided by operating activities for 2020 was $364.5 million compared with $310.3 million in 2019.
ONE Gas reaffirmed 2021 net income guided range of $198-$210 million and earnings per share expectation in the $3.68-$3.92 band. The midpoint of its EPS guidance is $3.80, lower than the current Zacks Consensus Estimate of $3.83 for the period.
Capital expenditure is expected to be $540 million for 2021, with more than 70% of the amount targeted for system integrity and the balance primarily for customer growth.
Currently, ONE Gas carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sempra Energy SRE posted fourth-quarter 2020 operating earnings of $1.90 per share, beating the Zacks Consensus Estimate of $1.55 by 22.6%.
ONEOK Inc. OKE posted fourth-quarter 2020 operating earnings of 69 cents per share, lagging the Zacks Consensus Estimate of 74 cents by 6.8%.
Atmos Energy Corporation ATO posted fiscal first-quarter 2021 operating earnings of $1.71 per share, beating the Zacks Consensus Estimate of $1.58 by 8.2%.
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