ONE Gas (OGS) Q3 Earnings Beat Estimates, Revenues Fall Y/Y
ONE Gas, Inc. OGS reported third-quarter 2023 operating earnings per share (EPS) of 45 cents, which surpassed the Zacks Consensus Estimate of 42 cents by 7.1%. The bottom line increased 2.3% from the year-ago quarter’s figure of 44 cents.
Total Revenues
ONE Gas recorded revenues of $335.8 million, which missed the Zacks Consensus Estimate of $393 million by 14.6%. The top line also decreased 6.6% from $359.4 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 64.2 billion cubic feet (bcf), down 2.6% from the year-ago quarter’s level. ONE Gas served 2,251,000 customers during the reported quarter, up 0.3% year over year. Actual performance was almost on par with our model prediction. Our model predicted 64.1 bcf total natural gas volumes delivered and 2,264,000 total customers served.
Total operating expenses were $207.7 million, up 11.6% from that recorded in the comparable period of 2022. This increase was due to a rise in Operations and maintenance (O&M) and depreciation and amortization expenses.
Operating income increased 21.6% year over year to $57.2 million.
ONE Gas incurred net interest expenses of $28 million, up 43% from the year-ago quarter’s level.
Financial Highlights
As of Sep 30, 2023, OGS had cash and cash equivalents of $9.2 million compared with $9.7 million as of Dec 31, 2022.
Long-term debt (excluding current maturities) was $1,862.6 million as of Sep 30, 2023, compared with $2,661.7 million as of Dec 31, 2022.
In the first nine months of 2023, cash provided by operating activities was $842.5 million compared with $1,555.8 million in the year-ago period.
2023 Guidance
ONE Gas has narrowed its net income guidance in the range of $227-$236 million. The company’s EPS has been revised to $4.06-$4.22 from $4.02-$4.26 projected earlier. The Zacks Consensus Estimate for earnings is pegged at $4.12 per share, a tad lower than the mid-point of the company’s guided range.
OGS continues to expect capital expenditures, including asset removal costs, of approximately $725 million in 2023.
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
Sempra Energy SRE is scheduled to report third-quarter results on Nov 3, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.01 per share, implying a year-over-year increase of 2%.
SRE’s long-term (three to five years) earnings growth rate is 5%. The company delivered an average earnings surprise of 9.81% in the last four quarters.
Atmos Energy Corporation ATO is slated to report fiscal fourth-quarter results on Nov 8, after market close. The Zacks Consensus Estimate for earnings is pegged at 74 cents per share, implying a year-over-year increase of 45.1%.
ATO’s long-term earnings growth rate is 7.3%. It delivered an average earnings surprise of 2.40% in the last four quarters.
NewJersey Resources NJR is slated to report fiscal fourth-quarter results on Nov 21, before market open. The Zacks Consensus Estimate for earnings is pegged at 30 cents per share.
NJR’s long-term earnings growth rate is 6%. It delivered an average earnings surprise of 120.75% in the last four quarters.
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