As ONE Gas leaders take part in another conference seeking new investors, they say the company suffered $2.2 billion estimated costs of natural gas purchases for the month of February 2021, mostly due to the winter storm and borrowed money to pay for it.
Leadership will take part Tuesday in the BofA Securities Power, Gas and Solar leaders conference.
In an investor’s presentation, the company explained spot prices in Oklahoma rose to more than $1,200 MCF as of Feb. 18 versus an average industrial price of $3.54 per Mcf in February 2020.
ONE Gas also obtained a new term loan of $2.5 billion for a two-year period on Feb. 22 and will use proceeds to pay for the February natural gas purchases.
It still has $700 million available for revolving credit facilities and available capacity of $595 million including cash on hand.
ONE Gas also revealed it will likely file for a rate hike on or before June 30 of this year with new rates to take effect in early 2022.