ONE Gas revenue results warmed by better rates, customer counts
A rate increase in Kansas and customer growth in Oklahoma and Texas pushed quarterly earnings higher for ONE Gas, a company that provides residential and commercial natural gas service to customers across much of Texas, Oklahoma and Kansas.
The company, headquartered in Tulsa, also reported increased annual earnings compared to 2018, citing those reasons and others for the improved results.
The company posted a fourth-quarter net income of about $51.2 million, or 97 cents per share, on total revenues of about $452.6 million, compared to about $44.7 million, or 85 cents per share, on total revenues of about $464.5 million.
The company’s net income for 2019 was about $186.8 million, or $3.53 per share, on total revenues of about $1.65 billion. In 2018, its net income was about $172.2 million, or $3.27 per share, on total revenues of about $1.63 billion.
The company also noted its net margin, comprised of total revenues less the cost of natural gas, also increased year-over-year, both for the final quarter and for the entire year.
In a release issued after markets closed Wednesday, officials attributed most of ONE Gas’ fourth-quarter 2019 net margin increase of $16.3 million to new rates it obtained from regulators that were passed along to Kansas consumers during the final month of that period.
It attributed the remainder of that increase to additional customers served by the company in Oklahoma and Texas.
ONE Gas’ average customer count in Oklahoma the final quarter of 2018 was 877,000, compared to 885,000 the final quarter of 2019.
The company’s net margin for 2019 was $45.7 million more than it was in 2018.
It attributed most of the increase to new rates, part of it to added customers in Oklahoma and Texas, and the remainder to higher transported volumes of natural gas in Kansas and higher sales volumes in Texas.
The company also reported an annual increase in operating costs of about $18.5 million.
Other expenses involving year-over-year depreciation and amortization, interest, capital expenditures and asset removal also climbed, somewhat.
Last month, the company announced it would increase its quarterly dividend paid to shareholders by 4 cents, to 54 cents per share. The dividend will be paid March 6 to shareholders of record on Feb. 21.
“We are pleased to close out the decade with a year of strong financial results,” Pierce H. Norton II, ONE Gas’ CEO, stated as part of the announcement. “As we move into a new decade, we will continue to focus on modernizing and expanding our pipelines while providing a safe, reliable and affordable energy choice for our customers.”