ONE Gas Stock Unveils 2025 and Long-Term Investment Plans

ONE Gas OGS announced its 2025 financial goals and updated the company’s five-year growth rates. The company has been planning to strengthen its infrastructure and properly execute OGS’ business strategy, which will ultimately allow it to meet customer demands.

Taking into account the benefit of new rates and customer growth, ONE Gas currently expects 2025 net income to be in the range of $254 million to $261 million, with earnings per diluted share of $4.20 to $4.32. The midpoint of 2025 guidance is $257 million in net income and $4.26 in earnings per diluted share.

The midpoint of the guidance is higher than the Zacks Consensus Estimate for 2025, which is pegged at $4.21 per share.

ONE Gas’ 2025 capital investment, including asset removal costs, is expected to be around $750 million and capital investments for extensions to new customers are expected to be nearly $180 million, primarily due to continued growth opportunities in Texas and Oklahoma.

ONE Gas expects its five-year capital expenditure for the 2025-2029 period to be $4 billion or in the range of $750 million to $850 million per year. The long-term capital expenditure includes growth capital of $1 billion.

Net income is expected to increase an average of 7% to 9% annually through 2027, with diluted earnings per share of 4% to 6%. Operating costs in the next five years are expected to increase nearly 4% per year down by 100 basis points from 2024 levels. The decline in operating expenses is going to boost margins of the company.

Subject to the approval of its board of directors, the company expects to achieve an average annual dividend growth rate of 1% to 2% through 2029.

In the past six months, shares of ONE Gas have risen 25.8% compared with the industry’s 23.4% growth.

Image Source: Zacks Investment Research

ONE Gas currently has a Zacks Rank #3 (Hold). Two better-ranked stocks in the same industry are Atmos Energy ATO and New Jersey Resources NJR, both companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term earnings (three to five years) growth of Atmos Energy is pegged at 7%. The fiscal 2025 earnings per share estimates have inched up 0.6% in the past 60 days.

New Jersey Resources’ fiscal 2025 earnings per share estimates have moved up 2.4% in the past 60 days. The current dividend yield of the company is 2.42%, which is better than the S&P 500’s yield of 1.42%.

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