ONE Gas reports increased 1Q net income

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ONE Gas, Inc. reported its first quarter 2023 net income totaled $102.6 million or $1.84 per diluted share.

It was an increase over the first quarter 2022 net income of $98.9 million or $1.83 per share. ONE Gas reported operating income of $149.2 million in the first quarter 2023, compared with $140.8 million in the first quarter 2022, which primarily reflects:
• an increase of $17.3 million from new rates; and
• a decrease of $1.6 million in COVID-19 related expenses.

The board of directors declared a quarterly dividend of $0.65 per share, or $2.60 per share on an annualized basis, payable on
June 2, 2023, to shareholders of record at the close of business on May 17, 2023.

“ONE Gas enters 2023 focused on the execution of our capital plan and enhancing the safety and resiliency of our system,”
said Robert S. McAnnally, president and chief executive officer. “Economic development continues to advance across our territories, and we remain well positioned to respond as customer demand grows.”

ONE Gas - About ONE Gas

• In March 2023, the Company executed a forward sale agreement for 2.0 million shares of its common stock, with settlement
by Dec. 29, 2023, for 1.4 million shares and by Dec. 31, 2024, for the remaining shares;
• Actual heating degree days across the Company’s service areas were 4,872 in the first quarter 2023, 7.0% warmer than
normal weather and 14.5% warmer than the same period last year;
• In February 2023, the Company entered into an at-the-market equity distribution agreement under which it may issue shares
of common stock with an aggregate price up to $300 million, replacing the previous at-the-market equity program filed in
February 2020;
•Weather across the ONE Gas service territories for the first quarter was 14.5% warmer than the prior year. Due to the company’s weather normalization mechanisms, the impact on operating income was not material.

In November 2022, KGSS-I issued $336 million of securitized utility tariff bonds. KGSS-I used the proceeds from the
issuance to purchase the Securitized Utility Tariff Property from Kansas Gas Service, pay for debt issuance costs, and reimburse
Kansas Gas Service for upfront securitization costs paid on behalf of KGSS-I.

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