ONE Gas, Inc. reported an increase in its second quarter 2022 net income which totaled $32.1 million or 59 cents a share.
The total compared to the $30.1 million and 56 cents a diluted share reported in the second quarter of 2021.
The newest quarterly income brought the year to date 2022 net income to $131 million or $2.42 per diluted share, up from the $125.7 million or $2.35 a share a year ago.
ONE Gas reported the actual heating degree days across its service areas were 635 in the quarter, 6% warmer than normal and 15% warmer compared to a year ago.
A quarterly dividend of $0.62 per share, or $2.48 per share on an annualized basis, was declared on July 18, 2022, payable on Sept. 1, 2022, to shareholders of record at the close of business on Aug. 15, 2022.
“Customer growth and continued economic development activity across our service area contributed to our second quarter financial results. Our capital program remains on track for the year, including system expansions to meet growing customer demand and planned system integrity investments,” said Robert S. McAnnally, president and chief executive officer. “We also released our 2022 ESG report which includes new disclosures, updates on our programs to support customers and employees and our progress toward a cleaner energy future.”
ONE Gas reported operating income of $58.6 million in the second quarter 2022, compared with $51.1 million in the second quarter 2021, which primarily reflects:
- an increase of $14.4 million from new rates; and
- an increase of $1.5 million in residential sales due to net customer growth in Oklahoma and Texas.
These increases were offset partially by:
- an increase of $5.8 million in outside service costs; and
- an increase of $0.7 million in employee-related costs, which reflects $3.3 million of higher labor and employee benefit costs, offset partially by a $2.7 million decrease in expenses associated with the change in our nonqualified employee benefit plan liabilities.
For the second quarter 2022, other expense, net, increased $4.4 million compared with the same period last year, due primarily to a $6.5 million decrease in the market value of investments associated with nonqualified employee benefit plans, offset partially by a decrease of $2.4 million in net periodic benefit cost other than service cost.
Income tax expense includes a credit for amortization of the regulatory liability associated with excess accumulated deferred income taxes (EDIT) of $3.0 million and $2.6 million for the three-month periods ended June 30, 2022, and 2021, respectively.
Capital expenditures and asset removal costs were $149.1 million for the second quarter 2022 compared with $129.4 million in the same period last year. The increase was due primarily to expenditures for system integrity and extension of service to new areas.
YEAR TO DATE 2022 FINANCIAL PERFORMANCE
Operating income for the six-month 2022 period was $199.3 million, compared with $181.4 million in 2021, which primarily reflects:
- an increase of $29.5 million from new rates;
- an increase of $4.1 million in residential sales due to net customer growth in Oklahoma and Texas;
- a decrease of $3.0 million in bad debt expense; and
- an increase of $1.2 million in late payment, reconnect and collection fees.
These increases were offset partially by:
- an increase of $9.5 million in outside service costs;
- an increase of $9.1 million in depreciation expense due to additional capital expenditures being placed in service; and
- an increase of $2.9 million in employee-related costs, which reflects $5.4 million of higher labor and employee benefit costs, offset partially by a $2.5 million decrease in expenses associated with the change in our nonqualified employee benefit plan liabilities.
For the six-month 2022 period, other expense, net, increased $8.2 million compared with the same period last year, due primarily to a $10.0 million decrease in the market value of investments associated with nonqualified employee benefit plans, offset partially by a decrease of $2.6 million in net periodic benefit cost other than service cost.
Income tax expense includes a credit for amortization of the regulatory liability associated with EDIT of $10.9 million and $10.7 million for the six-month periods ended June 30, 2022, and 2021, respectively.
Capital expenditures and asset removal costs were $272.0 million for the six-month 2022 period compared with $238.4 million in the same period last year. The increase was due primarily to expenditures for system integrity and extension of service to new areas.
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