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ONE Gas (OGS) Q4 Earnings Beat Estimates, Revenues Miss

Zacks Equity Research

ONE Gas OGS reported fourth-quarter 2019 earnings of 96 cents per share, which surpassed the Zacks Consensus Estimate of 95 cents by 1.1%.

The figure also rose 14.3% from the year-ago level driven by new rates, and residential customer growth in Oklahoma and Texas.

Total Revenues

The company recorded total revenues of $453 million in the fourth quarter, which missed the Zacks Consensus Estimate of $468 million by 3.3%. Revenues also declined 2.6% from the year-ago level.  

ONE Gas, Inc. Price, Consensus and EPS Surprise
 

ONE Gas, Inc. Price, Consensus and EPS Surprise

ONE Gas, Inc. price-consensus-eps-surprise-chart | ONE Gas, Inc. Quote

Quarterly Highlights

Total operating expenses in the reported quarter increased 9.2% from the year-ago figure to $179.92 million.

Operating income in the reported quarter increased 1.2% year over year to $81.9 million.

The company incurred interest expenses of $15.7 million, up 7.5% from the prior-year figure. The increase in expenses was due to refinancing of its senior notes.

Financial Highlights

As of Dec 31, 2019, ONE Gas had cash and cash equivalents of $17.9 million compared with $21.3 million in the corresponding period of 2018.

Long-term debt (excluding current maturities) was $1,286.1 million as of Dec 31, 2019, up from the comparable year-ago level of $1,285.5 million.

The company’s cash flow from operating activities in 2019 was $310.4 million compared with $467.7 million a year ago.

Guidance

ONE Gas has maintained its 2020 guidance, declared on Jan 21, 2020, for net income in the range of $186-$198 million. Its earnings per share guidance is projected in the range of $3.44-$3.68. The midpoint of management’s 2020 EPS guidance is $3.56, lower than the current Zacks Consensus Estimate of $3.62 for the period.

The company’s capital expenditures guidance, including asset removal costs, is estimated to be $475 million for 2020. Out of this, 70% will be directed toward system integrity and replacement projects.

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.

Other Releases

National Fuel Gas Company NFG posted first-quarter fiscal 2020 operating earnings of $1.01 per share, beating the Zacks Consensus Estimate of 95 cents by 6.3%.

Atmos Energy Corporation ATO posted first-quarter fiscal 2020 earnings of $1.47 per share, which lagged the Zacks Consensus Estimate of $1.49 by 1.3%.

Plains All American Pipeline, L.P. PAA reported fourth-quarter 2019 adjusted earnings of 63 cents per unit, beating the Zacks Consensus Estimate of 49 cents by 28.6%.

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