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ONE Gas (OGS) Q2 Earnings Miss Estimates, Revenues Beat

ONE Gas Inc. OGS reported second-quarter 2022 operating earnings per share (EPS) of 59 cents, which missed the Zacks Consensus Estimate of 62 cents by 4.8%.

However, the bottom line improved by 5.4% from the year-ago earnings of 56 cents per share, primarily due to contributions from the new rates and demand from an expanding residential customer base.

Total Revenues

ONE Gas recorded revenues of $428.9 million in the second quarter, which surpassed the Zacks Consensus Estimate of $348 million by 23.3%. The top line also improved by 35.9% from the year-ago level.

ONE Gas, Inc. Price, Consensus and EPS Surprise

ONE Gas, Inc. price-consensus-eps-surprise-chart | ONE Gas, Inc. Quote

Highlights of the Release

Total natural gas volumes delivered in the second quarter were 73.9 billion cubic feet, up 0.8% from the year-ago level due to an improving transportation sales volume and the commercial and industrial sales volumes.

Total operating expenses in the reported quarter increased 6.7% from the year-ago figure to $182.2 million.

The operating income in the reported quarter increased 14.7% year over year to $58.6 million.

ONE Gas incurred net interest expenses of $16.3 million, up 8.7%.

Financial Highlights

As of Jun 30, 2022, OGS had cash and cash equivalents of $7.4 million compared with $8.9 million as of Dec 31, 2021.

Long-term debt (excluding current maturities) was $2,283.9 million as of Jun 30, 2022 compared with $3,683.4 million as of Dec 31, 2021.

Cash provided by (used in) operating activities for the first six months of 2022 was $286.7 million compared with ($1,577.3) million in year-ago quarter.

Guidance

ONE Gas affirmed the 2022 net income in the range of $215-$227 million and EPS in the band of $3.96-$4.20. The midpoint of the earnings guidance is $4.08, higher than the Zacks Consensus Estimate of $4.05 per share.

Capital expenditure is expected at $650 million for 2022.

Zacks Rank

Currently, ONE Gas carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Atmos Energy Corporation ATO is slated to report third-quarter fiscal 2022 earnings on Aug 3 after market close. The Zacks Consensus Estimate for Atmos Energy’s fiscal third-quarter EPS is pegged at 86 cents.

Atmos Energy’s long-term earnings growth is currently pegged at 7.4%. The Zacks Consensus Estimate for ATO’s 2022 earnings implies year-over-year growth of 8.2%.

National Fuel Gas Company NFG is slated to report second-quarter 2022 earnings on Aug 4 before market open. The Zacks Consensus Estimate for National Fuel Gas Company’s second-quarter EPS is pegged at $1.47.

National Fuel Gas Company’s long-term earnings growth is currently pegged at 15.2%. The Zacks Consensus Estimate for NFG’s 2022 earnings implies year-over-year growth of 35%.

MDU Resources Group MDU is slated to report second-quarter 2022 earnings on Aug 4 before market open. The Zacks Consensus Estimate for MDU Resources Group’s second-quarter EPS is pegged at 49 cents.

MDU Resources Group’s long-term earnings growth is currently pegged at 6.9%. The Zacks Consensus Estimate for MDU’s 2022 earnings implies year-over-year growth of 9.6%.


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Atmos Energy Corporation (ATO): Free Stock Analysis Report
 
MDU Resources Group, Inc. (MDU): Free Stock Analysis Report
 
National Fuel Gas Company (NFG): Free Stock Analysis Report
 
ONE Gas, Inc. (OGS): Free Stock Analysis Report
 
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