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Share Name | Share Symbol | Market | Type |
---|---|---|---|
ONE Gas Inc | NYSE:OGS | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 63.95 | 5 | 09:05:52 |
TULSA, Okla., July 29, 2015 /PRNewswire/ -- ONE Gas, Inc. (NYSE: OGS) today announced financial results for its second quarter 2015 and affirmed its full-year 2015 guidance.
Highlights include:
"Our second quarter results were supported by lower operating costs and new rates from pipeline system integrity investments, which were partially offset by the impact of warmer-than-normal weather," said Pierce H. Norton II, president and chief executive officer. "I would like to thank our employees for their continued focus and commitment to serving our customers safely and reliably while efficiently managing expenses."
SECOND-QUARTER 2015 FINANCIAL PERFORMANCE
ONE Gas reported operating income of $31.3 million in the second quarter 2015, compared with $26.8 million in the second quarter 2014.
Net margin increased by $0.3 million compared with second quarter 2014, which primarily reflects:
Second-quarter 2015 operating costs were $112.5 million, compared with $118.4 million in the second quarter 2014, which primarily reflects:
Second-quarter 2015 depreciation and amortization was $33.0 million, compared with $31.3 million in the second quarter 2014. This increase was due primarily to an increase in depreciation expense from capital investments placed in service.
Capital expenditures were $70.5 million for the second quarter 2015, compared with $82.9 million in the second quarter 2014, due primarily to information technology assets acquired in 2014 due to the separation from ONEOK.
Key Statistics: More detailed information is listed in the tables.
YEAR-TO-DATE 2015 FINANCIAL PERFORMANCE
Operating income for the six-month 2015 period was $140.3 million, compared with $136.2 million for the same period last year.
Net margin increased by $3.5 million compared with the same period last year, which primarily reflects:
Operating costs for the six-month 2015 period were $234.9 million, compared with $237.3 million for the same period last year, which primarily reflects:
Depreciation and amortization for the six-month 2015 period was $64.6 million, compared with $62.8 million for the same period last year. This increase was due to a $5.1 million increase in depreciation expense from capital investments placed in service, offset partially by a $2.6 million decrease associated with the ad-valorem surcharge rider in Kansas and take-or-pay rider in Oklahoma.
Capital expenditures for the six-month 2015 period were $125.4 million, compared with $148.6 million for the same period last year, due primarily to information technology assets acquired in 2014 due to the separation from ONEOK.
The company ended the second quarter with $135.9 million of cash and cash equivalents, no short-term borrowings and $1.0 million in letters of credit, leaving $699 million of credit available under its $700 million credit facility. The total debt-to-capitalization ratio at June 30, 2015, was approximately 40 percent.
> View earnings tables
REGULATORY ACTIVITY
Oklahoma
In July 2015, Oklahoma Natural Gas filed a request with the OCC for an increase in base rates, reflecting system investments and operating costs necessary to maintain the safety and reliability of its natural gas distribution system. Oklahoma Natural Gas' request, if approved, represents an increase of $50.4 million in base rates and would result in a typical residential customer paying $4.98 more per month for the utility's natural gas service.
In accordance with Oklahoma law, the OCC has 180 days to consider Oklahoma Natural Gas' proposed rate changes.
Texas
In March 2015, Texas Gas Service filed under the El Paso Annual Rate Review (EPARR) requesting an increase in revenues of $9.4 million in the City of El Paso and surrounding incorporated cities. The filing included a request to include a payroll adjustment, which would increase revenues by an additional $1.8 million, for a total increase in revenues of $11.2 million. If approved, new rates will become effective in August 2015.
The EPARR provides for a streamlined review of Texas Gas Service's revenue requirement on an annual basis, and is in lieu of a filing under the Gas Reliability Infrastructure Program (GRIP) statute with the City of El Paso.
GRIP is a capital-recovery mechanism that allows for a rate adjustment providing recovery of and a return on incremental capital investments made between rate cases.
Texas Gas Service received approval for rate relief under the GRIP statute with the City of Austin, Texas, and surrounding communities in May 2015, for approximately $3.7 million. The new rates became effective in June 2015.
In the normal course of business, Texas Gas Service has received approval for increases totaling $3.0 million in 2015 for rate relief under the GRIP and cost-of-service adjustments in other Texas jurisdictions to address investments in rate base and changes in cost of service.
Kansas
Kansas Gas Service is expected to file a rate case in mid-2016 based on a 2015 test year, with new rates effective January 2017.
2015 FINANCIAL GUIDANCE AFFIRMED
ONE Gas affirmed its 2015 financial guidance, with net income expected to be in the range of $108 million to $118 million.
Capital expenditures are expected to be approximately $300 million in 2015. More than 70 percent of these expenditures are targeted for system integrity and replacement projects.
EARNINGS CONFERENCE CALL AND WEBCAST
The ONE Gas executive management team will conduct a conference call on Thurs., July 30, 2015, at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time). The call also will be carried live on the ONE Gas website.
To participate in the telephone conference call, dial 888-661-5167, pass code 5380939, or log on to www.onegas.com.
If you are unable to participate in the conference call or the webcast, a replay will be available on the ONE Gas website, www.onegas.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 5380939.
LINK TO EARNINGS TABLES
http://www.onegas.com/~/media/OGS/Earnings/2015/OGS_Q2Earnings-$w$CbK95.ashx
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ONE Gas, Inc. (NYSE: OGS) is a natural gas distribution company and the successor to the company founded in 1906 as Oklahoma Natural Gas Company, which became ONEOK, Inc. (NYSE: OKE) in 1980. On Jan. 31, 2014, ONE Gas officially separated from ONEOK into a stand-alone, 100 percent regulated, publicly traded natural gas utility.
ONE Gas trades on the New York Stock Exchange under the symbol "OGS," and is included in the S&P MidCap 400 Index.
ONE Gas provides natural gas distribution services to more than 2 million customers in Oklahoma, Kansas and Texas. ONE Gas is one of the largest publicly traded, 100 percent regulated, natural gas utilities in the United States.
ONE Gas is headquartered in Tulsa, Okla., and its companies include the largest natural gas distributor in Oklahoma and Kansas, and 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. For the latest news about ONE Gas, follow us on Twitter @ONEGasInc.
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," and other words and terms of similar meaning.
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:
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.
Analyst Contact: |
Andrew Ziola |
918-947-7163 | |
Media Contact: |
Jennifer Rector |
918-947-7571 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/one-gas-announces-second-quarter-2015-financial-results-affirms-2015-financial-guidance-300120715.html
SOURCE ONE Gas, Inc.
Copyright 2015 PR Newswire
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