ONE Gas (OGS) Q1 Earnings Lag Estimates, Revenues Beat
ONE Gas, Inc. OGS reported first-quarter 2023 operating earnings per share (EPS) of $1.84, which missed the Zacks Consensus Estimate of $1.85 by 0.54%. The bottom line, however, increased 0.55% from the year-ago quarter’s figure of $1.83.
Total Revenues
ONE Gas recorded revenues of $1,032.1 million, which surpassed the Zacks Consensus Estimate of $837 million by 23.3%. The top line also increased 6.2% from $971.5 million in the prior-year period.
ONE Gas, Inc. Price, Consensus and EPS Surprise
ONE Gas, Inc. price-consensus-eps-surprise-chart | ONE Gas, Inc. Quote
Highlights of the Release
Total natural gas volumes delivered in the reported quarter were 138.8 billion cubic feet, down 6.3% from the year-ago level. ONE Gas served 2,280,000 customers during the same time frame, up 0.7% from the prior-year quarter’s number.
Total operating expenses were $217.1 million, up 13.8% from that recorded in the comparable period of 2022.
Operating income increased 6% year over year to $149.2 million.
ONE Gas incurred net interest expenses of $30.1 million, up 93.1% from the year-ago level.
Financial Highlights
As of Mar 31, 2023, OGS had cash and cash equivalents of $7.8 million compared with $9.7 million as of Dec 31, 2022.
Long-term debt (excluding current maturities) was $1,875.6 million as of Mar 31, 2023, compared with $2,661.7 million as of Dec 31, 2022.
In first-quarter 2023, cash provided by operating activities was $469.1 million compared with $107.6 million in the year-ago quarter.
2023 Guidance
ONE Gas has reaffirmed its net income guidance in the range of $224-$238 million. The company’s EPS expectations lie in the band of $4.02-$4.26 per share. The Zacks Consensus Estimate for earnings is pegged at $4.13 per share, a cent lower than the mid-point of the company’s guided range.
OGS expects capital expenditures, including asset removal costs, to be approximately $675 million.
Zacks Rank
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.
Upcoming Releases
Atmos Energy Corporation ATO is slated to report fiscal second-quarter results on May 3, after market close. The Zacks Consensus Estimate for earnings is pegged at $2.47 per share, implying a year-over-year increase of 4.22%.
ATO’s long-term (three to five years) earnings growth rate is currently pinned at 7.48%. The consensus estimate for 2023 EPS stands at $6, indicating a year-over-year improvement of 7.14%.
NewJersey Resources NJR is slated to report fiscal second-quarter results on May 4, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.2 per share.
NJR’s long-term earnings growth is currently pinned at 6%. The consensus estimate for 2023 EPS stands at $2.63, indicating a year-over-year improvement of 5.2%.
Spire Inc. SR is scheduled to report fiscal second-quarter results on May 3, before market open. The Zacks Consensus Estimate for earnings is pegged at $3.49 per share, indicating a year-over-year increase of 2.05%.
SR’s long-term earnings growth is currently pinned at 4.22%. The consensus mark for 2023 EPS stands at $4.21, implying a year-over-year improvement of 9.1%.
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