July 30, 2018 | Analyst Contact: | Brandon Lohse 918-947-7472 | |
Media Contact: | Jennifer Rector 918-947-7571 | ||
ONE Gas Announces Second-quarter 2018 Financial Results
TULSA, Okla. - July 30, 2018 - ONE Gas, Inc. (NYSE: OGS) today announced financial results for its second quarter 2018 and updated 2018 financial guidance.
Highlights include:
• | Second-quarter 2018 net income was $20.4 million, or $0.39 per diluted share, compared with $20.6 million, or $0.39 per diluted share, in the second quarter 2017; |
• | Year-to-date 2018 net income was $111.3 million, or $2.10 per diluted share, compared with $97.1 million, or $1.83 per diluted share, in the same period last year; |
• | Updated net income guidance range of $167 million to $178 million, or $3.15 to $3.35 per share; |
• | Actual heating degree days across the company's service areas were 858 in the second quarter 2018, 29 percent colder than normal and 54 percent colder than the same period last year; |
• | Actual heating degree days across the company's service areas were 6,120 in the six months ended June 30, 2018, 2 percent colder than normal and 34 percent colder than the same period last year; and |
• | A quarterly dividend of 46 cents per share, or $1.84 per share on an annualized basis, was declared on July 23, 2018, payable on Sept. 4, 2018, to shareholders of record at the close of business on Aug. 13, 2018. |
"Colder-than-normal weather and new rates in our service territories positively impacted second-quarter results," said Pierce H. Norton II, president and chief executive officer. "Our employees remain diligent and focused on managing expenses and providing safe and reliable service to our more than 2 million customers."
SECOND-QUARTER 2018 FINANCIAL PERFORMANCE
ONE Gas reported operating income of $41.0 million in the second quarter 2018, compared with $48.4 million in the second quarter 2017.
Net margin increased by $1.2 million compared with second quarter 2017, which primarily reflects:
• | A $3.8 million increase from new rates in Texas and Kansas; |
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• | A $2.4 million increase due to higher sales volumes, net of weather normalization, primarily from colder weather in 2018 compared with 2017; |
• | A $2.1 million increase due primarily to higher transportation volumes; and |
• | A $1.1 million increase attributed to net residential customer growth in Oklahoma and Texas; offset by |
• | A $9.2 million decrease related to the deferral of potential refund obligations associated with the Tax Cuts and Jobs Act of 2017. |
Second-quarter 2018 operating costs were $117.6 million, compared with $110.9 million in the second quarter 2017, which primarily reflects:
• | A $7.9 million increase in employee-related expenses; offset by |
• | A $1.3 million decrease in costs associated with pipeline maintenance activities. |
Second-quarter 2018 depreciation and amortization expense was $39.8 million, compared with $37.9 million in the second quarter 2017, due primarily to an increase in depreciation expense from capital investments placed in service and an increase in the amortization of the ad-valorem surcharge rider in Kansas.
Results for the second quarter of 2018 reflect lower income tax expense of approximately $3.8 million due primarily to the decrease in the federal statutory income tax rate to 21 percent in 2018 from 35 percent in 2017 as a result of the Tax Cuts and Jobs Act of 2017.
Capital expenditures were $89.2 million for the second quarter 2018, compared with $84.2 million in the second quarter 2017, due primarily to increased system integrity activities and extending service to new areas.
Key Statistics: More detailed information is listed on page 13 in the tables.
• | Actual heating degree days in the Oklahoma service area were 337 in the second quarter 2018, 76 percent colder than normal and 85 percent colder than the same period last year; |
• | Actual heating degree days in the Kansas service area were 486 in the second quarter 2018, 16 percent colder than normal and 41 percent colder than the same period last year; |
• | Actual heating degree days in the Texas service area were 35 in the second quarter 2018, 35 percent warmer than normal and 21 percent colder than the same period last year; |
• | Residential natural gas sales volumes delivered were 15.6 billion cubic feet (Bcf) in the second quarter 2018, up 33 percent compared with the same period last year; |
• | Total natural gas sales volumes delivered were 21.8 Bcf in the second quarter 2018, up 29 percent compared with the same period last year; |
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• | Natural gas transportation volumes delivered were 51.8 Bcf in the second quarter 2018, up 5 percent compared with the same period last year; and |
• | Total natural gas volumes delivered were 73.6 Bcf in the second quarter 2018, up 12 percent compared with the same period last year. |
YEAR-TO-DATE 2018 FINANCIAL PERFORMANCE
Operating income for the six-month 2018 period was $171.3 million, compared with $177.8 million for the same period last year.
Net margin increased by $2.0 million compared with the same period last year, which primarily reflects:
• | An $8.9 million increase from new rates in Texas and Kansas; |
• | A $4.8 million increase due to higher sales volumes, net of weather normalization, primarily from colder weather in 2018 compared with 2017; |
• | A $4.6 million increase due primarily to higher transportation volumes; |
• | A $2.4 million increase attributed to net residential customer growth in Oklahoma and Texas; |
• | A $1.1 million increase in rider and surcharge recoveries due to a higher ad-valorem surcharge in Kansas, which is offset by higher regulatory amortization expense; and |
• | A $0.9 million increase due to a compressed natural gas federal excise tax credit that was enacted in February 2018 and retroactive to 2017; offset by |
• | A $21.5 million decrease related to the deferral of potential refund obligations associated with the Tax Cuts and Jobs Act of 2017. |
Operating costs for the six-month 2018 period were $236.4 million, compared with $231.7 million for the same period last year, which primarily reflects:
• | A $7.9 million increase in employee-related expenses; offset by |
• | A $2.4 million decrease in costs associated with pipeline maintenance activities. |
Depreciation and amortization expense for the six-month 2018 period was $78.7 million, compared with $74.9 million for the same period last year, due primarily to an increase in depreciation expense from capital investments placed in service and an increase in the amortization of the ad-valorem surcharge rider in Kansas.
Results for the six-month 2018 period reflect lower income tax expense of approximately $20.0 million due primarily to the decrease in the federal statutory income tax rate to 21 percent in 2018 from 35 percent in 2017 as a result of the Tax Cuts and Jobs Act of 2017.
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Capital expenditures for the six-month 2018 period were $175.8 million, compared with $154.7 million for the same period last year, due primarily to increased system integrity activities and extending service to new areas.
The company ended the second quarter 2018 with $12.6 million of cash and cash equivalents and $514.2 million of credit available under its $700 million credit facility. The total debt-to-capitalization ratio at June 30, 2018, was 41 percent, and the ratio of long-term debt-to-capitalization ratio was 37 percent.
> View earnings tables
REGULATORY ACTIVITY
Oklahoma
In March 2018, Oklahoma Natural Gas filed its second annual Performance-Based Rate Change (PBRC) application following the general rate case that was approved in January 2016. The filing was based on a calendar test year of 2017. The PBRC filing identified a $5.6 million credit to base rates primarily due to the reduction in the corporate federal statutory income tax rate. If approved as filed, the credit will be applied to customers' bills over a 12-month period following receipt of an order. The filing also requested an energy-efficiency program true-up and a utility incentive adjustment of approximately $2.1 million.
A hearing before the administrative law judge was held on July 27, 2018, with an order expected in the third quarter 2018.
Kansas
In June 2018, Kansas Gas Service filed a request with the Kansas Corporation Commission (KCC) for an increase in base rates, reflecting investments in system improvements and changes in operating costs necessary to maintain the safety and reliability of its natural gas distribution system. Kansas Gas Service’s request, if approved, represents a net base rate increase of $42.7 million. Kansas Gas Service is already recovering $2.9 million from customers through the Gas System Reliability Surcharge, resulting in a total base rate increase of $45.6 million. Benefits of the corporate income tax cuts associated with the Tax Cuts and Jobs Act of 2017 are also reflected in Kansas Gas Service's filing. This request would increase the average residential customer's natural gas bill by $5.67 per month.
In accordance with Kansas law, the KCC has 240 days to consider Kansas Gas Service's filing.
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Texas
West Texas Service Area:
In March 2018, Texas Gas Service made filings under the Gas Reliability Infrastructure Program (GRIP) for all customers in the West Texas service area. The Texas Railroad Commission (RRC) and the cities agreed to an increase of $3.5 million, and new rates became effective in July 2018.
Rio Grande Valley Service Area:
In April 2018, Texas Gas Service filed an annual Cost-of-Service Adjustment for the incorporated areas of the Rio Grande Valley service area. The cities approved an increase of $1.1 million, and new rates will become effective in August 2018.
Central Texas Service Area:
In March 2018, Texas Gas Service made GRIP filings for all customers in the Central Texas service area. The RRC and the cities agreed to an increase of $3.3 million, and new rates became effective in July 2018.
North Texas Service Area:
In June 2018, Texas Gas Service filed a rate case for customers in its North Texas service area for an increase of $1.0 million. If approved, new rates are expected to become effective in December 2018.
2018 FINANCIAL GUIDANCE
Management's net income outlook for 2018 is expected to be in the range of $167 million to $178 million, or $3.15 to $3.35 per diluted share. The financial guidance reflects the impact of colder-than-normal weather and higher transport volumes.
Capital expenditures are expected to be approximately $375 million to $390 million in 2018, with 70 percent of these expenditures targeted for system integrity and replacement projects.
Additional information is available in the guidance table on the ONE Gas website.
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EARNINGS CONFERENCE CALL AND WEBCAST
The ONE Gas executive management team will conduct a conference call on Tuesday, July 31, 2018, at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time). The call also will be carried live on the ONE Gas website.
To participate in the telephone conference call, dial 888-487-0360, pass code 9386886, or log on to www.onegas.com.
If you are unable to participate in the conference call or the webcast, a replay will be available on the ONE Gas website, www.onegas.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 9386886.
LINK TO EARNINGS TABLES
http://www.onegas.com/~/media/OGS/Earnings/2018/Q2_2018_OGS-Ddke4j98Qqde4c0m.ashx
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ONE Gas, Inc. (NYSE: OGS) is a 100-percent 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.
ONE Gas provides natural gas distribution services to more than 2 million customers in Oklahoma, Kansas and Texas.
ONE Gas is headquartered in Tulsa, Okla., and its divisions include Oklahoma Natural Gas, the largest natural gas distributor in Oklahoma; Kansas Gas Service, the largest in Kansas, and Texas Gas Service, the third largest in Texas, in terms of customers.
Its largest natural gas distribution markets by customer count are Oklahoma City and Tulsa, Okla.; Kansas City, Wichita and Topeka, Kan.; and Austin and El Paso, Texas. ONE Gas serves residential, commercial, industrial, transportation and wholesale customers in all three states.
For more information, visit the website at http://www.ONEGas.com.
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.
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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 operating costs and amounts equivalent to income taxes, costs of property, plant and equipment and regulatory assets in our regulated rates; |
• | our ability to manage our operations and maintenance costs; |
• | 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 industrial customers;
• | competition from alternative forms of energy, including, but not limited to, electricity, solar power, wind power, geothermal energy and biofuels; |
• | conservation and energy storage efforts of our customers; |
• | variations in weather, including seasonal effects on demand, the occurrence of storms and disasters, and climate change; |
• | 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; |
• | the mechanical integrity of facilities operated; |
• | operational hazards and unforeseen operational interruptions; |
• | adverse labor relations; |
• | the effectiveness of our strategies to reduce earnings lag, margin protection strategies and risk mitigation strategies, which may be affected by risks beyond our control such as commodity price volatility and counterparty creditworthiness; |
• | our ability to generate sufficient cash flows to meet all our liquidity needs; |
• | 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; |
• | 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; |
• | impact of potential impairment charges; |
• | volatility and changes in markets for natural gas; |
• | 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; |
• | changes in existing or the addition of new environmental, safety, tax and other laws to which we and our subsidiaries are subject; |
• | the uncertainty of estimates, including accruals and costs of environmental remediation; |
• | advances in technology; |
• | population growth rates and changes in the demographic patterns of the markets we serve; |
• | acts of nature and the potential effects of threatened or actual terrorism and war; |
• | cyber attacks or breaches of technology systems that could disrupt our operations or result in the loss or exposure of confidential or sensitive customer, employee or company information; |
• | the sufficiency of insurance coverage to cover losses; |
• | the effects of our strategies to reduce tax payments; |
• | the effects of litigation and regulatory investigations, proceedings, including our rate cases, or inquiries and the requirements of our regulators as a result of the Tax Cuts and Jobs Act of 2017; |
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• | changes in accounting standards; |
• | changes in corporate governance standards; |
• | discovery 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; |
• | 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; |
• | the 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; |
• | the final resolutions or outcomes with respect to our contingent and other corporate liabilities related to the natural gas distribution business and any related actions for indemnification made pursuant to the Separation and Distribution Agreement with ONEOK; and |
• | the costs associated with increased regulation and enhanced disclosure and corporate governance requirements pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. |
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 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.
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ONE Gas, Inc. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(Unaudited) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
(Thousands of dollars, except per share amounts) | ||||||||||||||||
Revenues | ||||||||||||||||
Revenues from contracts with customers | $ | 291,168 | $ | 274,033 | $ | 926,405 | $ | 810,193 | ||||||||
Other revenues | 1,353 | 5,656 | 4,580 | 19,904 | ||||||||||||
Total revenues | 292,521 | 279,689 | 930,985 | 830,097 | ||||||||||||
Cost of natural gas | 94,159 | 82,572 | 444,578 | 345,726 | ||||||||||||
Net margin | 198,362 | 197,117 | 486,407 | 484,371 | ||||||||||||
Operating expenses | ||||||||||||||||
Operations and maintenance | 102,995 | 96,928 | 205,660 | 201,972 | ||||||||||||
Depreciation and amortization | 39,757 | 37,851 | 78,647 | 74,870 | ||||||||||||
General taxes | 14,567 | 13,973 | 30,767 | 29,719 | ||||||||||||
Total operating expenses | 157,319 | 148,752 | 315,074 | 306,561 | ||||||||||||
Operating income | 41,043 | 48,365 | 171,333 | 177,810 | ||||||||||||
Other expense, net | (2,194 | ) | (3,900 | ) | (4,358 | ) | (7,307 | ) | ||||||||
Interest expense, net | (12,003 | ) | (11,305 | ) | (24,355 | ) | (22,786 | ) | ||||||||
Income before income taxes | 26,846 | 33,160 | 142,620 | 147,717 | ||||||||||||
Income taxes | (6,427 | ) | (12,537 | ) | (31,366 | ) | (50,638 | ) | ||||||||
Net income | $ | 20,419 | $ | 20,623 | $ | 111,254 | $ | 97,079 | ||||||||
Earnings per share | ||||||||||||||||
Basic | $ | 0.39 | $ | 0.39 | $ | 2.11 | $ | 1.85 | ||||||||
Diluted | $ | 0.39 | $ | 0.39 | $ | 2.10 | $ | 1.83 | ||||||||
Average shares (thousands) | ||||||||||||||||
Basic | 52,692 | 52,553 | 52,648 | 52,565 | ||||||||||||
Diluted | 52,899 | 52,969 | 52,898 | 53,012 | ||||||||||||
Dividends declared per share of stock | $ | 0.46 | $ | 0.42 | $ | 0.92 | $ | 0.84 | ||||||||
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ONE Gas, Inc. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
June 30, | December 31, | |||||||
(Unaudited) | 2018 | 2017 | ||||||
Assets | (Thousands of dollars) | |||||||
Property, plant and equipment | ||||||||
Property, plant and equipment | $ | 5,870,814 | $ | 5,713,912 | ||||
Accumulated depreciation and amortization | 1,745,124 | 1,706,327 | ||||||
Net property, plant and equipment | 4,125,690 | 4,007,585 | ||||||
Current assets | ||||||||
Cash and cash equivalents | 12,580 | 14,413 | ||||||
Accounts receivable, net | 163,967 | 298,768 | ||||||
Materials and supplies | 36,124 | 39,672 | ||||||
Natural gas in storage | 80,482 | 130,154 | ||||||
Regulatory assets | 39,402 | 88,180 | ||||||
Other current assets | 18,154 | 17,807 | ||||||
Total current assets | 350,709 | 588,994 | ||||||
Goodwill and other assets | ||||||||
Regulatory assets | 385,564 | 405,189 | ||||||
Goodwill | 157,953 | 157,953 | ||||||
Other assets | 48,003 | 47,157 | ||||||
Total goodwill and other assets | 591,520 | 610,299 | ||||||
Total assets | $ | 5,067,919 | $ | 5,206,878 | ||||
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ONE Gas, Inc. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Continued) | ||||||||
June 30, | December 31, | |||||||
(Unaudited) | 2018 | 2017 | ||||||
Equity and Liabilities | (Thousands of dollars) | |||||||
Equity and long-term debt | ||||||||
Common stock, $0.01 par value: authorized 250,000,000 shares; issued 52,598,005 shares and outstanding 52,516,828 shares at June 30, 2018; issued 52,598,005 and outstanding 52,312,516 shares at December 31, 2017 | $ | 526 | $ | 526 | ||||
Paid-in capital | 1,723,795 | 1,737,551 | ||||||
Retained earnings | 308,652 | 246,121 | ||||||
Accumulated other comprehensive income (loss) | (5,370 | ) | (5,493 | ) | ||||
Treasury stock, at cost: 81,177 shares at June 30, 2018 and 285,489 shares at December 31, 2017 | (5,259 | ) | (18,496 | ) | ||||
Total equity | 2,022,344 | 1,960,209 | ||||||
Long-term debt, excluding current maturities, and net of issuance costs of $7,614 and $8,033, respectively | 893,671 | 1,193,257 | ||||||
Total equity and long-term debt | 2,916,015 | 3,153,466 | ||||||
Current liabilities | ||||||||
Current maturities of long-term debt | 300,008 | 8 | ||||||
Notes payable | 185,000 | 357,215 | ||||||
Accounts payable | 70,429 | 143,681 | ||||||
Accrued interest | 19,028 | 18,776 | ||||||
Accrued taxes other than income | 34,931 | 41,324 | ||||||
Accrued liabilities | 20,724 | 30,058 | ||||||
Regulatory liabilities | 47,867 | 9,438 | ||||||
Customer deposits | 61,249 | 60,811 | ||||||
Other current liabilities | 10,102 | 12,019 | ||||||
Total current liabilities | 749,338 | 673,330 | ||||||
Deferred credits and other liabilities | ||||||||
Deferred income taxes | 628,532 | 599,945 | ||||||
Regulatory liabilities | 521,717 | 519,421 | ||||||
Employee benefit obligations | 160,382 | 172,938 | ||||||
Other deferred credits | 91,935 | 87,778 | ||||||
Total deferred credits and other liabilities | 1,402,566 | 1,380,082 | ||||||
Commitments and contingencies | ||||||||
Total liabilities and equity | $ | 5,067,919 | $ | 5,206,878 | ||||
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ONE Gas, Inc. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
(Unaudited) | 2018 | 2017 | ||||||
(Thousands of dollars) | ||||||||
Operating activities | ||||||||
Net income | $ | 111,254 | $ | 97,079 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 78,647 | 74,870 | ||||||
Deferred income taxes | 30,546 | 50,308 | ||||||
Share-based compensation expense | 4,080 | 4,951 | ||||||
Provision for doubtful accounts | 4,071 | 3,501 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 130,730 | 135,165 | ||||||
Materials and supplies | 3,548 | (2,792 | ) | |||||
Natural gas in storage | 49,672 | 10,436 | ||||||
Asset removal costs | (17,340 | ) | (22,837 | ) | ||||
Accounts payable | (68,428 | ) | (68,992 | ) | ||||
Accrued interest | 252 | 104 | ||||||
Accrued taxes other than income | (6,393 | ) | (9,009 | ) | ||||
Accrued liabilities | (9,334 | ) | (6,729 | ) | ||||
Customer deposits | 438 | (686 | ) | |||||
Regulatory assets and liabilities | 105,967 | 19,782 | ||||||
Other assets and liabilities | (17,753 | ) | (5,880 | ) | ||||
Cash provided by operating activities | 399,957 | 279,271 | ||||||
Investing activities | ||||||||
Capital expenditures | (175,834 | ) | (154,666 | ) | ||||
Other | — | 477 | ||||||
Cash used in investing activities | (175,834 | ) | (154,189 | ) | ||||
Financing activities | ||||||||
Repayments of notes payable, net | (172,215 | ) | (66,000 | ) | ||||
Repurchase of common stock | — | (17,512 | ) | |||||
Issuance of common stock | 2,390 | 2,208 | ||||||
Dividends paid | (48,272 | ) | (44,042 | ) | ||||
Tax withholdings related to net share settlements of stock compensation | (7,859 | ) | (9,286 | ) | ||||
Cash used in financing activities | (225,956 | ) | (134,632 | ) | ||||
Change in cash and cash equivalents | (1,833 | ) | (9,550 | ) | ||||
Cash and cash equivalents at beginning of period | 14,413 | 14,663 | ||||||
Cash and cash equivalents at end of period | $ | 12,580 | $ | 5,113 | ||||
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ONE Gas, Inc. | |||||||||||||||
INFORMATION AT A GLANCE | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(Unaudited) | 2018 | 2017 | 2018 | 2017 | |||||||||||
(Millions of dollars, except as noted) | |||||||||||||||
Financial | |||||||||||||||
Net margin | $ | 198.4 | $ | 197.2 | $ | 486.4 | $ | 484.4 | |||||||
Operating costs | $ | 117.6 | $ | 110.9 | $ | 236.4 | $ | 231.7 | |||||||
Depreciation and amortization | $ | 39.8 | $ | 37.9 | $ | 78.7 | $ | 74.9 | |||||||
Operating income | $ | 41.0 | $ | 48.4 | $ | 171.3 | $ | 177.8 | |||||||
Capital expenditures | $ | 89.2 | $ | 84.2 | $ | 175.8 | $ | 154.7 | |||||||
Net margin on natural gas sales | $ | 166.0 | $ | 168.4 | $ | 411.6 | $ | 417.5 | |||||||
Transportation revenues | $ | 24.1 | $ | 21.4 | $ | 57.6 | $ | 51.6 | |||||||
Net margin, excluding other revenues | $ | 190.1 | $ | 189.8 | $ | 469.2 | $ | 469.1 | |||||||
Volumes (Bcf) | |||||||||||||||
Natural gas sales | |||||||||||||||
Residential | 15.6 | 11.7 | 76.6 | 55.9 | |||||||||||
Commercial and industrial | 5.9 | 4.9 | 23.9 | 17.8 | |||||||||||
Wholesale and public authority | 0.4 | 0.3 | 1.2 | 1.0 | |||||||||||
Total sales volumes delivered | 21.8 | 16.9 | 101.7 | 74.7 | |||||||||||
Transportation | 51.8 | 49.1 | 116.7 | 110.2 | |||||||||||
Total volumes delivered | 73.6 | 66.0 | 218.4 | 184.8 | |||||||||||
Average number of customers (in thousands) | |||||||||||||||
Residential | 2,008 | 1,997 | 2,013 | 2,001 | |||||||||||
Commercial and industrial | 159 | 158 | 159 | 159 | |||||||||||
Wholesale and public authority | 3 | 3 | 3 | 3 | |||||||||||
Transportation | 12 | 12 | 12 | 12 | |||||||||||
Total customers | 2,182 | 2,170 | 2,187 | 2,175 | |||||||||||
Heating Degree Days | |||||||||||||||
Actual degree days | 858 | 556 | 6,120 | 4,563 | |||||||||||
Normal degree days | 664 | 663 | 5,975 | 5,950 | |||||||||||
Percent colder (warmer) than normal weather | 29 | % | (16 | )% | 2 | % | (23 | )% | |||||||
Statistics by State | |||||||||||||||
Oklahoma | |||||||||||||||
Average number of customers (in thousands) | 877 | 872 | 880 | 875 | |||||||||||
Actual degree days | 337 | 182 | 2,207 | 1,574 | |||||||||||
Normal degree days | 191 | 191 | 1,966 | 1,966 | |||||||||||
Percent colder (warmer) than normal weather | 76 | % | (5 | )% | 12 | % | (20 | )% | |||||||
Kansas | |||||||||||||||
Average number of customers (in thousands) | 642 | 640 | 644 | 643 | |||||||||||
Actual degree days | 486 | 345 | 2,975 | 2,331 | |||||||||||
Normal degree days | 419 | 419 | 2,947 | 2,922 | |||||||||||
Percent colder (warmer) than normal weather | 16 | % | (18 | )% | 1 | % | (20 | )% | |||||||
Texas | |||||||||||||||
Average number of customers (in thousands) | 663 | 658 | 663 | 657 | |||||||||||
Actual degree days | 35 | 29 | 938 | 658 | |||||||||||
Normal degree days | 54 | 53 | 1,062 | 1,062 | |||||||||||
Percent colder (warmer) than normal weather | (35 | )% | (45 | )% | (12 | )% | (38 | )% | |||||||
-more-
ONE Gas Announces Second-quarter 2018 Financial Results
July 30, 2018
Page 14
ONE Gas, Inc. | ||||||||||||
EARNINGS GUIDANCE* | ||||||||||||
Updated | Previous | |||||||||||
2018 | 2018 | |||||||||||
(Unaudited) | Guidance | Guidance | Change | |||||||||
(Millions of dollars) | ||||||||||||
Operating income | ||||||||||||
Net margin | $ | 921 | $ | 908 | $ | 13 | ||||||
Operations and maintenance | 420 | 411 | 9 | |||||||||
Depreciation and amortization | 161 | 164 | (3 | ) | ||||||||
General taxes | 59 | 61 | (2 | ) | ||||||||
Operating income | 281 | 272 | 9 | |||||||||
Other income (expense) | (8 | ) | (12 | ) | 4 | |||||||
Interest expense | (50 | ) | (51 | ) | 1 | |||||||
Income before income taxes | 223 | 209 | 14 | |||||||||
Income taxes | (51 | ) | (47 | ) | (4 | ) | ||||||
Net income | $ | 172 | $ | 162 | $ | 10 | ||||||
*Amounts shown are midpoints of ranges provided. | ||||||||||||