ONE Gas Inc. announced first quarter earnings this week showing its net income totaled only a few million less than one year earlier. The report was released while ONE Gas and its affiliates await action on rate hike requests in Oklahoma, Kansas and Texas.
The company reported $99.3 million or $1.75 per diluted share in net income compared with $102.6 million or $1.84 per share in the first quarter of 2023.
ONE Gas reported operating income of $145.9 million in the first quarter 2024, compared with $149.2 million in the first quarter 2023, which primarily reflects:
- an increase of $8.5 million in employee-related costs due in part to planned investments in the Company’s workforce and ongoing in-sourcing efforts; and
- a decrease of $3.7 million in revenue due to lower sales volumes, net of the impact of weather normalization mechanisms
However, the company also stated that the declines were offset by an increase of $11.2 million in revenue from new rates.
“Efficient capital execution and our focus on safe operations position us well to serve a growing customer base,” said Robert S. McAnnally, president and chief executive officer. “Based on our first quarter results, we remain on track to achieve the midpoint of our 2024 financial guidance.”
The company’s board of directors declared a quarterly dividend of 66 cents a share or $2.64 annualized. It will be payable on June 4, 2024 to shareholders of record at the close of business on May 20, 2024.
ONE Gas is seeking rate hikes in the three states it serves. In Oklahoma, the $31.8 million base rate revenue increase filed by Oklahoma Natural Gas is before the Oklahoma Corporation Commission. Part of the request includes $2.4 million energy efficiency incentive and $12.8 million of EDIT to be credited to customers in 2025. A hearing is set to be held June 4, 2024 before state regulators.
Another subsidiary, Kansas Gas Service submitted a$93.1 million rate hike request with the Kansas Corporation Commission. The request includes an increase in net base rates of $58.1 million. At least $35 million was already approved and collected through the Gas SystemReliability Surcharge filings.
In March 2024, Texas Gas Service made a Gas Reliability Infrastructure Program (GRIP) filing for all customers in the West-North service area, requesting a $8.6 million increase to be effective in July 2024.
In February 2024, Texas Gas Service made a GRIP filing for all customers in the Central- Gulf service area, requesting a $12.3 million increase to be effective in June 2024.
