ONE Gas beats Q2 revenue estimates on new rates and customer growth, raises 2026 earnings outlook

ONE Gas

04/08/2026 21:43

Overview
US natural gas utility's Q2 revenue fell yr/yr but beat analyst expectations 
Company raised 2026 adjusted earnings guidance to upper half of prior range
Q2 net income and EPS increased yr/yr, driven by new rates and customer growth

Outlook
ONE Gas raises 2026 adj net income outlook to upper half of $306 mln-$314 mln range
Company expects 2026 adj EPS in upper half of $4.83-$4.95 range
ONE Gas expects 2026 capital investments of about $800 mln, including $230 mln for customer extensions

Result Drivers
NEW RATES - Co said Q2 revenue rose $16.4 mln due to new rates
CUSTOMER GROWTH - Co said residential sales increased $1.4 mln due to net customer growth in Oklahoma and Texas
LOWER INTEREST EXPENSE - Co said net interest expense fell $3.8 mln due to commercial paper borrowings at lower rates and Texas House Bill 4384

Company press release: ID:nPn2SPKvra

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$411.64 mln
$397.16 mln (3 Analysts)
Q2 EPS
 
$0.74
 
Q2 Net Income
 
$46.81 mln
 
Q2 Dividend
 
$0.68
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the natural gas utilities peer group is "buy"
Wall Street's median 12-month price target for ONE Gas Inc is $89.00, about 13.5% above its August 3 closing price of $78.40
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads
Aug 3 - Unitil Q2 net income rises on higher rates, customer growth
Aug 3 - ONEOK Inc beats Q2 EPS estimates on record natural gas liquids volumes, raises 2026 outlook
Aug 4 - Public Service Enterprise beats profit estimates on electric and gas unit boost

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)