"As we enter 2026, we are fully leveraging opportunities to support customer growth and invest in our system, all while maintaining our commitments to safety and customer affordability," said Robert S. McAnnally, president and chief executive officer. "We remain focused on meeting evolving customer needs and advancing investments that position us for ongoing, sustainable growth."
2026 FINANCIAL GUIDANCE
ONE Gas (the "Company") expects 2026 net income to be in the range of $294 million to $302 million, with earnings per diluted share of $4.65 to $4.77. The midpoints of 2026 guidance are net income of $298 million and earnings per diluted share of $4.71.
The Company's 2026 earnings guidance includes the benefit of new rates and customer growth, partially offset by higher operating expenses and depreciation expense from capital investments.
Capital investments, including asset removal costs, are expected to be approximately $800 million in 2026, primarily targeted for system integrity and replacement projects. Capital investments for extensions to new customers are expected to be approximately $230 million, largely due to continued growth opportunities in Texas and Oklahoma. The anticipated average rate base for 2026 is $6.3 billion.
FIVE-YEAR FINANCIAL GROWTH RATES
For the five years ending 2030, capital investments, including asset removal costs, are expected to be in the range of $800 million to $900 million per year, or approximately $4.3 billion for the five-year period, including growth capital of approximately $1.2 billion. Capital expenditures support estimated average rate base growth of 7% to 9% per year through 2030.
Annual net income and diluted earnings per share are expected to increase by an average of 7% to 9% and 5% to 7%, respectively, over the long term.
Operating costs over the five-year period are expected to increase an average of approximately 3% to 4% per year, compared to the 4% average annual increase indicated in the 2025 financial guidance.
The Company estimates total net long-term financing needs for the period 2026 through 2030 of approximately $1.3 billion, of which approximately 30% is expected to be equity.
The Company has outstanding forward sale agreements covering approximately 2.9 million shares of its common stock at an average price of approximately $78 per share. Had all forward shares been settled at the end of the third quarter, net proceeds would have been approximately $226 million. The Company expects to settle approximately $205 million of its outstanding equity under forward sale agreements at year-end 2025 and roll forward the remaining balance for settlement at year-end 2026.
Consistent with last year's guidance, the Company expects to achieve an average annual dividend growth rate of 1% to 2% through 2030, subject to the board of directors' approval.
CONFERENCE CALL, WEBCAST AND INVESTOR PRESENTATION
The ONE Gas executive management team will conduct a conference call on Tuesday, Dec. 2, 2025, at 8 a.m. Eastern Standard Time (7 a.m. Central Standard Time). The call also will be carried live on the ONE Gas website.
To participate in the telephone conference call, dial 833-470-1428, passcode 582279, or log on to www.onegas.com/investors and select Events and Presentations.
If you are unable to participate in the conference call or the webcast, a replay will be ...
