ONE Gas Inc · Q1 2020 earnings

Briefing

ONE Gas reported first quarter earnings, declared dividend and affirmed financial guidance.

ONE Gas announced first quarter 2020 financial results with a net income of $91.7 million, or $1.72 per diluted share. The company affirmed its 2020 financial guidance, expecting net income in the range of $186 million to $198 million, or $3.44 to $3.68 per diluted share.

• First quarter net income was $91.7 million, or $1.72 per diluted share, compared with $93.7 million, or $1.76 per diluted share, in the first quarter 2019.
• Actual heating degree days across the company's service areas were 4,714 in the first quarter 2020, 10% warmer than normal and 19% warmer than the same period last year.
• Delivered natural gas sales volumes for the first quarter 2020 were 16% lower compared with the first quarter 2019, primarily as a result of the warmer weather.
• The board of directors declared a quarterly dividend of $0.54 per share, or $2.16 per share on an annualized basis, payable on June 1, 2020, to shareholders of record at the close of business on May 13, 2020.

Headline financials

Revenue & EPS history

ONE Gas affirmed its 2020 financial guidance, with net income expected to be in the range of $186 million to $198 million, or $3.44 to $3.68 per diluted share. Management expects a negative impact to earnings from lower revenues and net incremental expenses, including bad debt expenses, associated with the COVID-19 pandemic.