ONE Gas, Inc. (NYSE: OGS) reported its fourth quarter and full-year 2024 financial results, highlighting strong financial performance driven by strategic regulatory execution and cost management.
Fourth quarter net income was $77.0 million, or $1.34 per diluted share, up from $70.7 million, or $1.27 per diluted share, in the same period of 2023. Full-year net income totaled $222.9 million, or $3.91 per diluted share, compared to $231.2 million, or $4.14 per diluted share, in 2023.
Key financial highlights for 2024 include the settlement of 3.16 million shares under the company’s at-the-market equity program, raising net proceeds of $245.7 million. Capital expenditures and asset removal costs increased to $762.1 million from $728.7 million in the previous year. Additionally, the company raised its quarterly dividend to $0.67 per share, payable on March 7, 2025.
In the fourth quarter, operating income rose to $124.3 million from $107.1 million in 2023, primarily due to $24.6 million from new rates, $1.2 million from residential sales growth in Oklahoma and Texas, and $7.9 million in gas sales-related revenues. These gains were partially offset by increases in depreciation, employee-related costs, and ad-valorem taxes.
Despite weather being 24.3% warmer than normal, the impact on operating income was mitigated by weather normalization mechanisms. Interest expense rose due to higher weighted average rates on commercial paper and recent senior note issuances.
Capital expenditures and asset removal costs in the fourth quarter were $190.4 million, in line with the prior year, reflecting continued investment in system integrity and service expansion.
