NYSE$OGS

ONE Gas Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

ONE Gas reported second quarter financial results and reaffirmed its 2020 earnings guidance.

ONE Gas reported a net income of $25.3 million, or $0.48 per diluted share, for the second quarter of 2020. The company reaffirmed its 2020 earnings guidance and updated its expectation for capital expenditures and asset removal costs in 2020.

  • Second quarter 2020 net income was $25.3 million, or $0.48 per diluted share, compared with $24.5 million, or $0.46 per diluted share, in the second quarter 2019.
  • Year to date 2020 net income was $117.0 million, or $2.20 per diluted share, compared with $118.1 million, or $2.22 per diluted share, in the same period last year.
  • Actual heating degree days across the company's service areas were 775 in the second quarter 2020, 22% colder than normal and 33% colder than the same period last year.
  • A quarterly dividend of $0.54 per share was declared on July 20, 2020, payable on Sept. 1, 2020.

Headline financials

Total Revenue

$273M

Previous: $291M-5.9%
EPS (adj)

$0.48

Previous: $0.46+4.3%
Total customers

2.2M

No prior period
Actual heating degree days

775

No prior period
Capital Expenditures

$121M

Previous: $101M+20.2%
Free Cash Flow

-$25.5M

Previous: $17.8M-242.8%
Net Income

$25.3M

Previous: $24.5M+3.5%
Operating Income

$44.6M

Previous: $46.9M-4.9%
Gross Profit

$107M

Previous: $106M+0.7%
Cash & Equivalents

$10.5M

Previous: $11.1M-5.9%
Total Assets

$5.68B

Previous: $5.45B+4.3%
Stock-Based Comp

$2.83M

Previous: $2.96M-4.4%

Revenue & EPS history

ONE Gas · Revenue · Quarterly

$273M

Q2 2020-5.9%vs Q2 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

ONE Gas · $211M total across 3 segments · Q2 2020

  • Natural gas sales
    $181M
  • Transportation revenues
    $24.3M
  • Other revenues
    $5.5M

Forward guidance

ONE Gas reaffirmed its 2020 earnings guidance issued Jan. 21, 2020, with net income expected to be in the range of $186 million to $198 million, with a midpoint of $192 million, or $3.44 to $3.68 per diluted share, with a midpoint of $3.56 per diluted share. Capital expenditures, including asset removal costs, are now expected to be in the range of $500 million to $525 million for 2020, up from $475 million.

Tailwinds

  • Net income expected to be in the range of $186 million to $198 million.
  • Midpoint of net income is expected to be $192 million.
  • Earnings per diluted share expected to be in the range of $3.44 to $3.68.
  • Midpoint of earnings per diluted share is expected to be $3.56.
  • Capital expenditures, including asset removal costs, are now expected to be in the range of $500 million to $525 million for 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.3%

Avg return

Earnings day

+0.0%

Avg return

5 days after

-0.6%

Avg return

30 days after

60%

31 / 52 earnings

Positive

+6.7%

Q3 2020

Best reaction

-4.1%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.3%-4.2%-12.9%
Q4 2025+1.8%+1.7%-0.1%
Q3 2025+0.1%+0.9%-3.4%
Q1 2025+3.6%-1.5%-6.2%
Q4 2024-0.2%+3.1%+0.9%
Q3 2024+0.7%+4.7%+7.0%
Q1 2024-0.9%-2.0%-6.1%
Q4 2023+0.2%-3.7%+3.1%
Q3 2023-1.8%+1.1%-4.3%
Q2 2023-1.6%-2.3%-6.8%
Q1 2023+1.8%+4.9%+5.2%
Q4 2022+0.5%+1.2%-3.6%
Q3 2022+3.7%+4.8%+12.6%
Q2 2022-2.3%-5.1%-7.9%
Q1 2022-1.6%+0.9%+2.8%
Q4 2021+0.3%+7.4%+12.3%
Q3 2021+2.0%+2.9%-4.2%
Q2 2021+1.5%+0.6%-1.3%
Q1 2021-0.9%-2.6%-7.0%
Q4 2020-4.1%-1.5%+7.4%
Q3 2020+6.7%+2.9%+14.6%
Q2 2020+0.2%-2.0%-4.7%
Q1 2020-2.7%-9.6%-5.5%
Q4 2019-1.7%-3.1%-29.7%
Q3 2019-2.0%-2.1%-4.7%
Q2 2019+1.0%+0.2%-1.2%
Q1 2019+0.6%+0.8%-1.9%
Q4 2018+0.6%+2.4%+6.1%
Q3 2018+1.1%-3.0%+4.1%
Q2 2018+2.2%+1.2%+4.5%
Q1 2018+3.2%+5.4%+7.3%
Q4 2017-3.1%-2.2%-6.1%
Q3 2017+0.7%-0.0%+2.3%
Q2 2017+1.6%+1.4%+2.9%
Q1 2017+1.0%+0.7%+2.6%
Q4 2016+2.4%+1.9%+4.6%
Q3 2016-1.4%-2.6%+0.3%
Q2 2016-1.5%-2.2%-5.7%
Q1 2016+2.5%
Q4 2015+0.5%
Q3 2015-0.8%
Q2 2015+3.0%
Q1 2015+1.7%
Q4 2012-0.2%
Q4 2014-0.2%
Q3 2014+1.9%
Q3 2013+1.9%
Q4 2013-3.2%
Q2 2014-3.2%
Q2 2013-3.2%
Q1 2013+0.7%
Q1 2014+2.9%
Q2 2012

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