ONE Gas Increases Quarterly Dividend; Narrows 2023 Financial Guidance
TULSA, Okla., Jan. 23, 2024 /PRNewswire/ -- The board of directors of ONE Gas, Inc. (NYSE: OGS) today increased the dividend for the first quarter 2024 by 1 cent per share to 66 cents per share, resulting in an annualized dividend of $2.64 per share.
The dividend is payable March 8, 2024, to shareholders of record at the close of business Feb. 23, 2024.
The Company expects an average annual dividend increase of 1% to 2% through 2028, with a target dividend payout ratio of approximately 55% to 65% of net income, subject to approval by the board of directors.
2023 FINANCIAL GUIDANCE
The Company also narrowed its 2023 financial guidance to earnings of $4.12 to $4.16 per diluted share from the previous range of $4.06 to $4.22 per diluted share. Net income is now expected to be in the range of $229 million to $233 million. Capital investments for 2023 are expected to be approximately $725 million.
ONE Gas, Inc. (NYSE: OGS) is a 100% regulated natural gas utility, and trades on the New York Stock Exchange under the symbol "OGS." ONE Gas is included in the S&P MidCap 400 Index and is one of the largest natural gas utilities in the United States.
Headquartered in Tulsa, Oklahoma, ONE Gas provides a reliable and affordable energy choice to more than 2.3 million customers in Kansas, Oklahoma and Texas. Its divisions include Kansas Gas Service, the largest natural gas distributor in Kansas; Oklahoma Natural Gas, the largest in Oklahoma; and Texas Gas Service, the third largest in Texas, in terms of customers.
For more information and the latest news about ONE Gas, visit onegas.com and follow its social channels: @ONEGas, Facebook, LinkedIn and YouTube.
Some of the statements contained and incorporated in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The forward-looking statements relate to our anticipated financial performance, liquidity, management's plans and objectives for our future operations, our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled," "likely," and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements, which are applicable only as of the date of this news release. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:
-- our ability to recover costs, income taxes and amounts equivalent to the
cost of property, plant and equipment, regulatory assets and our allowed
rate of return in our regulated rates or other recovery mechanisms;
-- cyber-attacks, which, according to experts, continue to increase in
volume and sophistication, or breaches of technology systems that could
disrupt our operations or result in the loss or exposure of confidential
or sensitive customer, employee, vendor or Company information; further,
increased remote working arrangements have required enhancements and
modifications to our information technology infrastructure (e.g.
Internet, Virtual Private Network, remote collaboration systems, etc.),
and any failures of the technologies, including third-party service
providers, that facilitate working remotely could limit our ability to
conduct ordinary operations or expose us to increased risk or effect of
an attack;
-- our ability to manage our operations and maintenance costs;
-- the concentration of our operations in Oklahoma, Kansas and Texas;
-- changes in regulation of natural gas distribution services, particularly
those in Oklahoma, Kansas and Texas;
-- the economic climate and, particularly, its effect on the natural gas
requirements of our residential and commercial customers;
-- the length and severity of a pandemic or other health crisis which could
significantly disrupt or prevent us from operating our business in the
ordinary course for an extended period;
-- competition from alternative forms of energy, including, but not limited
to, electricity, solar power, wind power, geothermal energy and
biofuels;
-- adverse weather conditions and variations in weather, including seasonal
effects on demand and/or supply, the occurrence of severe storms in the
territories in which we operate, and climate change, and the related
effects on supply, demand, and costs;
-- indebtedness could make us more vulnerable to general adverse economic
and industry conditions, limit our ability to borrow additional funds
and/or place us at competitive disadvantage compared with competitors;
-- our ability to secure reliable, competitively priced and flexible
natural gas transportation and supply, including decisions by natural
gas producers to reduce production or shut-in producing natural gas
wells and expiration of existing supply and transportation and storage
arrangements that are not replaced with contracts with similar terms and
pricing;
-- our ability to complete necessary or desirable expansion or
infrastructure development projects, which may delay or prevent us from
serving our customers or expanding our business;
-- operational and mechanical hazards or interruptions;
-- adverse labor relations;
-- the effectiveness of our strategies to reduce earnings lag, revenue
protection strategies and risk mitigation strategies, which may be
affected by risks beyond our control such as commodity price volatility,
counterparty performance or creditworthiness and interest rate risk;
-- the capital-intensive nature of our business, and the availability of
and access to, in general, funds to meet our debt obligations prior to
or when they become due and to fund our operations and capital
expenditures, either through (i) cash on hand, (ii) operating cash flow,
or (iii) access to the capital markets and other sources of liquidity;
-- our ability to obtain capital on commercially reasonable terms, or on
terms acceptable to us, or at all;
-- limitations on our operating flexibility, earnings and cash flows due to
restrictions in our financing arrangements;
-- cross-default provisions in our borrowing arrangements, which may lead
to our inability to satisfy all of our outstanding obligations in the
event of a default on our part;
-- changes in the financial markets during the periods covered by the
forward-looking statements, particularly those affecting the
availability of capital and our ability to refinance existing debt and
fund investments and acquisitions to execute our business strategy;
-- actions of rating agencies, including the ratings of debt, general
corporate ratings and changes in the rating agencies' ratings criteria;
-- changes in inflation and interest rates;
-- our ability to recover the costs of natural gas purchased for our
customers and any related financing required to support our purchase of
natural gas supply;
-- impact of potential impairment charges;
-- volatility and changes in markets for natural gas and our ability to
secure additional and sufficient liquidity on reasonable commercial
terms to cover costs associated with such volatility;
-- possible loss of local distribution company franchises or other adverse
effects caused by the actions of municipalities;
-- payment and performance by counterparties and customers as contracted
and when due, including our counterparties maintaining ordinary course
terms of supply and payments;
-- changes in existing or the addition of new environmental, safety, tax
and other laws to which we and our subsidiaries are subject, including
those that may require significant expenditures, significant increases
in operating costs or, in the case of noncompliance, substantial fines
or penalties;
-- the effectiveness of our risk-management policies and procedures, and
employees violating our risk-management policies;
-- the uncertainty of estimates, including accruals and costs of
environmental remediation;
-- advances in technology, including technologies that increase efficiency
or that improve electricity's competitive position relative to natural
gas;
-- population growth rates and changes in the demographic patterns of the
markets we serve, and economic conditions in these areas' housing
markets;
-- acts of nature and the potential effects of threatened or actual
terrorism and war, including recent events in Europe and the Middle
East;
-- the sufficiency of insurance coverage to cover losses;
-- the effects of our strategies to reduce tax payments;
-- changes in accounting standards;
-- changes in corporate governance standards;
-- existence of material weaknesses in our internal controls;
-- our ability to comply with all covenants in our indentures and the ONE
Gas Credit Agreement, a violation of which, if not cured in a timely
manner, could trigger a default of our obligations;
-- our ability to attract and retain talented employees, management and
directors, and shortage of skilled-labor;
-- unexpected increases in the costs of providing health care benefits,
along with pension and postemployment health care benefits, as well as
declines in the discount rates on, declines in the market value of the
debt and equity securities of, and increases in funding requirements
for, our defined benefit plans; and
-- our ability to successfully complete merger, acquisition or divestiture
plans, regulatory or other limitations imposed as a result of a merger,
acquisition or divestiture, and the success of the business following a
merger, acquisition or divestiture.
These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Part 1, Item 1A, Risk Factors, in our Annual Report. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: Erin Dailey
918-947-7411
Media Contact: Leah Harper
918-947-7123
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SOURCE ONE Gas, Inc.
