The following is a summary of the ONE Gas, Inc. (OGS) Q1 2024 Earnings Call Transcript:
Financial Performance:
ONE Gas reported a Q1 net income of $99 million or $1.75 per diluted share, a slight drop compared to $103 million or $1.84 during the same period in 2023.
Despite warmer weather in Q1, earnings impact was minimum thanks to effective weather normalization mechanisms.
Q1 revenues witnessed a lift of $11.2 million from new rates and $1.3 million from an expanding customer base.
Compared to the same period last year, Q1 Operating & Maintenance (O&M) expenses were up by about 5%.
Other income net saw a rise of almost $1 million, predominantly due to increases in the market value of investments associated with the company's non-qualified employee benefits plan.
The company confirmed its 2024 financial guidance, which includes a projected net income of $214 million to $231 million, earnings per diluted share of $3.70 to $4, and capital investments of around $750 million.
Business Progress:
ONE Gas is targeting the midpoint of the 2024 financial guidance by managing O&M expenses, realizing efficiencies from internal functions, and responding aptly to economic developments.
Continuing to add new meters, the company is boosting affordability for customers.
Celebrating a significant safety milestone, the company received the American Gas Association Safety Award for the seventh year in a row for maintaining the lowest rate of injuries among peer companies.
Following the execution of a safety-driven pipeline replacement plan, the company has achieved a 50% reduction in emissions due to leaks as of December 31, 2023, keeping them on course with their stated 2035 goal.
MSCI awarded ONE Gas a AAA ESG rating, acknowledging its competent management of safety and climate-related risks.
More details: ONE Gas IR
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