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Mar 31, 2020

ONE Gas Q1 2020 Earnings Report

ONE Gas reported first quarter earnings, declared dividend and affirmed financial guidance.

Key Takeaways

ONE Gas announced first quarter 2020 financial results with a net income of $91.7 million, or $1.72 per diluted share. The company affirmed its 2020 financial guidance, expecting net income in the range of $186 million to $198 million, or $3.44 to $3.68 per diluted share.

First quarter net income was $91.7 million, or $1.72 per diluted share, compared with $93.7 million, or $1.76 per diluted share, in the first quarter 2019.

Actual heating degree days across the company's service areas were 4,714 in the first quarter 2020, 10% warmer than normal and 19% warmer than the same period last year.

Delivered natural gas sales volumes for the first quarter 2020 were 16% lower compared with the first quarter 2019, primarily as a result of the warmer weather.

The board of directors declared a quarterly dividend of $0.54 per share, or $2.16 per share on an annualized basis, payable on June 1, 2020, to shareholders of record at the close of business on May 13, 2020.

Total Revenue
$528M
Previous year: $661M
-20.1%
EPS
$1.72
Previous year: $1.76
-2.3%
Heating Degree Days
4.71K
Previous year: 5.83K
-19.2%
Total Customers
2.22M
Previous year: 2.2M
+0.8%
Gross Profit
$197M
Previous year: $188M
+5.1%
Cash and Equivalents
$11.1M
Previous year: $19.6M
-43.6%
Free Cash Flow
$69.2M
Previous year: $39M
+77.5%
Total Assets
$5.67B
Previous year: $5.52B
+2.7%

ONE Gas

ONE Gas

ONE Gas Revenue by Segment

Forward Guidance

ONE Gas affirmed its 2020 financial guidance, with net income expected to be in the range of $186 million to $198 million, or $3.44 to $3.68 per diluted share. Management expects a negative impact to earnings from lower revenues and net incremental expenses, including bad debt expenses, associated with the COVID-19 pandemic.

Challenges Ahead

  • Management expects a negative impact to earnings from lower revenues and net incremental expenses, including bad debt expenses, associated with the COVID-19 pandemic.

Revenue & Expenses

Visualization of income flow from segment revenue to net income