ONE Gas (OGS) Q2 Earnings Miss Estimates, Revenues Fall Y/Y
ONE Gas, Inc. OGS reported second-quarter 2023 operating earnings per share (EPS) of 58 cents, which missed the Zacks Consensus Estimate of 59 cents by 1.7%. The bottom line also decreased 1.7% from the year-ago quarter’s recorded figure of 59 cents.
Total Revenues
ONE Gas recorded revenues of $398.1 million, which missed the Zacks Consensus Estimate of $454 million by 12.3%. The top line also decreased 7.2% from $429 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 71.7 billion cubic feet (bcf), down 3.1% from the year-ago quarter’s level. ONE Gas served 2,268,000 customers during the reported quarter, up 0.3% year over year. Actual performance was a tad lower than our model prediction. Our model predicted 75.8 bcf total natural gas volumes delivered and 2,282,000 total customers served.
Total operating expenses were $203.9 million, up 11.9% from that recorded in the comparable period of 2022.
Operating income increased 9.2% year over year to $64 million.
ONE Gas incurred net interest expenses of $27.5 million, up 68.7% from the year-ago quarter’s level.
Financial Highlights
As of Jun 30, 2023, OGS had cash and cash equivalents of $7.3 million compared with $9.7 million as of Dec 31, 2022.
Long-term debt (excluding current maturities) was $1,876.2 million as of Jun 30, 2023, compared with $2,661.7 million as of Dec 31, 2022.
In first six months of 2023, cash provided by operating activities was $748.7 million compared with $286.7 million in the year-ago period.
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 continues to expect capital expenditures, including asset removal costs, of approximately $675 million.
Zacks Rank
Currently, ONE Gas carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Spire Inc. SR is scheduled to report fiscal third-quarter results on Aug 2, before market open. The Zacks Consensus Estimate for earnings is pegged at a loss of 2 cents per share.
SR’s long-term (three to five years) earnings growth rate is 4.22%. The company delivered an average earnings surprise of 9.4% in the last four quarters.
Atmos Energy Corporation ATO is slated to report fiscal third-quarter results on Aug 2, after market close. The Zacks Consensus Estimate for earnings is pegged at 95 cents per share, implying a year-over-year increase of 3.3%.
ATO’s long-term earnings growth rate is 7.48%. It delivered an average earnings surprise of 4.9% in the last four quarters.
NewJersey Resources NJR is slated to report fiscal third-quarter results on Aug 3, before market open. The Zacks Consensus Estimate for earnings is pegged at a loss of 3 cents per share, implying a year-over-year improvement of 25%.
NJR’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for fiscal 2023 earnings is pegged at $2.63 per share, implying year-over-year growth of 5.2%.
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