•
Jun 30, 2020

ONE Gas Q2 2020 Earnings Report

ONE Gas reported second quarter financial results and reaffirmed its 2020 earnings guidance.

Key Takeaways

ONE Gas reported a net income of $25.3 million, or $0.48 per diluted share, for the second quarter of 2020. The company reaffirmed its 2020 earnings guidance and updated its expectation for capital expenditures and asset removal costs in 2020.

Second quarter 2020 net income was $25.3 million, or $0.48 per diluted share, compared with $24.5 million, or $0.46 per diluted share, in the second quarter 2019.

Year to date 2020 net income was $117.0 million, or $2.20 per diluted share, compared with $118.1 million, or $2.22 per diluted share, in the same period last year.

Actual heating degree days across the company's service areas were 775 in the second quarter 2020, 22% colder than normal and 33% colder than the same period last year.

A quarterly dividend of $0.54 per share was declared on July 20, 2020, payable on Sept. 1, 2020.

Total Revenue
$273M
Previous year: $291M
-5.9%
EPS
$0.48
Previous year: $0.46
+4.3%
Heating Degree Days
775
Total Customers
2.22M
Gross Profit
$107M
Previous year: $106M
+0.7%
Cash and Equivalents
$10.5M
Previous year: $11.1M
-5.9%
Free Cash Flow
-$25.5M
Previous year: $17.8M
-242.8%
Total Assets
$5.68B
Previous year: $5.45B
+4.3%

ONE Gas

ONE Gas

ONE Gas Revenue by Segment

Forward Guidance

ONE Gas reaffirmed its 2020 earnings guidance issued Jan. 21, 2020, with net income expected to be in the range of $186 million to $198 million, with a midpoint of $192 million, or $3.44 to $3.68 per diluted share, with a midpoint of $3.56 per diluted share. Capital expenditures, including asset removal costs, are now expected to be in the range of $500 million to $525 million for 2020, up from $475 million.

Positive Outlook

  • Net income expected to be in the range of $186 million to $198 million.
  • Midpoint of net income is expected to be $192 million.
  • Earnings per diluted share expected to be in the range of $3.44 to $3.68.
  • Midpoint of earnings per diluted share is expected to be $3.56.
  • Capital expenditures, including asset removal costs, are now expected to be in the range of $500 million to $525 million for 2020.

Revenue & Expenses

Visualization of income flow from segment revenue to net income