ONEGas Inc. reported improved net income for all of 2021 so far but also a slight drop in third quarter 2021 net income compared to a year earlier. The Tulsa-based company announced Monday its net income was $20.3 million or 38 cents per diluted share compared to $21.1 million and 39 cents a share in the third quarter 2020.
But year-to-date 2021 net income was $145.9 million or $2.72 a share compared to $138.1 million and $2.59 a share a year earlier.
Still, company leadership called it a strong third quarter for 2021 because its operating income was $41.8 million compared with $40.7 million in the third quarter 2020. Operating income for the nine-month 2021 period was $223.3 million, compared with $218.5 million for the same period last year.
“In addition to the strong third quarter results supported by new rates and customer growth, we also released our Environmental, Social and Governance Report, which includes our 2020 results and further highlights our commitment to a cleaner energy future,” said Robert S. McAnnally, president and chief executive officer.
ONE gas has 2.2 million customers in Oklahoma, Kansas and Texas. Its net margin, a non-GAAP financial measure comprised of total revenues less cost of natural gas, increased $10.4 million compared with third quarter 2020, which primarily reflected an increase of $7.0 million from new rates, primarily in Texas and Oklahoma; an increase of $2.1 million in residential sales due primarily to net customer growth in Oklahoma and Texas; and an increase of $0.8 million due to higher sales volumes, net of weather normalization.
Third quarter 2021 operating costs were $121.5 million, compared with $115.4 million in the third quarter 2020, which primarily reflects:
- an increase of $3.1 million in outside services costs;
- an increase of $1.4 million in bad-debt expense; and
- an increase of $1.2 million in employee-related costs, offset partially by;
- a decrease of $1.1 million in expenses related to our response to the COVID-19 pandemic.
Click here for ONE Gas release.
