ONE Gas Announces Fourth Quarter and Full Year 2025 Financial Results; Releases Non-GAAP Adjusted Financial Guidance

Analyst call and webcast scheduled tomorrow, Feb. 19 at 11 a.m. EST

TULSA, Okla., Feb. 18, 2026 /PRNewswire/ -- ONE Gas, Inc. (NYSE: OGS) today announced its fourth quarter and full year 2025 financial results, which include diluted earnings per share of $1.42 and $4.37, respectively. The Company also provided non‑GAAP adjustments to both earnings and its 2026 financial guidance to capture the full impact of a regulatory mechanism intended to mitigate regulatory lag. Adjusted net income was $1.48 per diluted share for the fourth quarter, and $4.48 per diluted share for the full year 2025. For 2026, non‑GAAP earnings are expected to range from $306 million to $314 million, or $4.83 to $4.95 per diluted share.

"Our team delivered strong operational and financial results in 2025, reflecting disciplined execution and a commitment to safely serving our communities," said Robert S. McAnnally, president and chief executive officer. "Looking ahead, we see meaningful opportunity in both residential and large-load growth, supporting long-term value creation and affordability for our customers."

FINANCIAL RESULTS & HIGHLIGHTS

FOURTH QUARTER 2025 FINANCIAL PERFORMANCE

ONE Gas reported operating income of $139.7 million in the fourth quarter, compared with $124.3 million in the fourth quarter 2024, which primarily reflects:

The increases were partially offset by:

Weather was 22.7 percent warmer than normal for the three months ended Dec. 31, 2025. The impact on operating income was mitigated by weather normalization mechanisms.

Excluding interest related to KGSS-I securitized bonds, net interest expense decreased $2.9 million for the three months ending Dec. 31, 2025. The decrease in interest expense is due primarily to commercial paper borrowings at lower rates and the implementation of Texas House Bill 4384.

Income tax expense includes a credit for amortization of the regulatory liability associated with excess deferred income taxes (EDIT) of $5.6 million and $12.3 million for the three months ended Dec. 31, 2025, and 2024, respectively.

Capital expenditures and asset removal costs were $184.1 million for the fourth quarter 2025 compared with $190.4 million in the same period last year, primarily representing expenditures for system integrity and extension of service to new areas.

FULL YEAR 2025 FINANCIAL PERFORMANCE

Operating income for the twelve-month 2025 period was $457.5 million, compared with $399.0 million in 2024, which primarily reflects:

These increases were partially offset by:

Excluding interest related to KGSS-I securitized bonds, net interest expense decreased $3.0 million for the twelve months ended Dec. 31, 2025. The decrease in interest expense is due primarily to commercial paper borrowings at lower rates and the implementation of Texas House Bill 4384.

Income tax expense includes a credit for amortization of the regulatory liability associated with EDIT of $17.6 million and $25.7 million for the twelve months ended Dec. 31, 2025, and 2024, respectively.

Capital expenditures and asset removal costs were $759.5 million for the twelve-month 2025 period compared with $762.1 million in the same period last year.

In December, the Company settled 2,633,700 million shares of our common stock under forward contracts for net proceeds of $205.0 million.

REGULATORY ACTIVITIES UPDATE

In June 2025, Texas Gas Service filed a rate case for customers in the Central-Gulf, West-North, and Rio Grande Valley service areas. The Railroad Commission of Texas ultimately approved a $14.4 million revenue increase and the consolidation of all service areas into a single division, based on a 59.9% equity ratio and a 9.8% ROE. New rates became effective January 27, 2026.

2026 FINANCIAL GUIDANCE

On Dec. 1, 2025, ONE Gas announced that its 2026 net income is expected to be in the range of $294 million to $302 million, with earnings per diluted share of $4.65 to $4.77.

The Company expects 2026 adjusted net income to be in the range of $306 million to $314 million, with adjusted net income per diluted share of $4.83 to $4.95.

ONE Gas expects long‑term adjusted net income growth of 7 to 9 percent and adjusted net income per diluted share growth of 5 to 7 percent, consistent with its established five‑year financial outlook. These growth rates are based on adjusted 2025 actual results, including adjusted net income of $271 million and adjusted net income per diluted share of $4.48.

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 of the $800 million.

EARNINGS CONFERENCE CALL AND WEBCAST

The ONE Gas executive management team will host a conference call on Thursday, February 19, 2026, at 11 a.m. Eastern Standard Time (10 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 246604, 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 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 866-813-9403, passcode 437369.

NON-GAAP DISCLOSURE STATEMENT

This press release includes financial results and guidance for ONE Gas with respect to adjusted net income and adjusted net income per share, which are non-GAAP financial measures as defined by the Securities and Exchange Commission. Adjusted net income and adjusted net income per share are calculated as GAAP net income plus the deferral of an equity portion of a carrying cost attributable to shareholders' investment capitalized for regulatory purposes but not for financial reporting purposes. These carrying costs relate to property, plant and equipment that has been placed in service, but not yet reflected in base rates. Adjusted net income and adjusted net income per share should not be considered in isolation or as a substitute for GAAP net income or GAAP earnings per share.

Management believes these non‑GAAP measures provide useful information because they offer a more complete view of our overall regulatory economics, reflect the period-specific effects of certain regulatory mechanisms designed to mitigate regulatory lag associated with property, plant and equipment placed in service prior to regulatory action, and reflect the impact of regulatory timing differences that arise under the Company's rate-setting framework. These adjustments, net of applicable tax effects, are expected to recur as a result of the Company's regulatory framework and are a consistent part of our earnings profile. A reconciliation of the Company's GAAP net income and GAAP earnings per share to adjusted net income and adjusted net income per share is provided in the Appendix.

ONE Gas, Inc. (NYSE: OGS) is a 100% regulated natural gas utility, and trades on the New York Stock Exchange and the NYSE Texas 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.

Headquartered in Tulsa, Oklahoma, ONE Gas provides a reliable and affordable energy choice to more than 2.3 million customers in Kansas, Oklahoma and Texas. Its divisions include Kansas Gas Service, the largest natural gas distributor in Kansas; Oklahoma Natural Gas, the largest in Oklahoma; and Texas Gas Service, the third largest in Texas, in terms of customers.

For more information and the latest news about ONE Gas, visit onegas.com and follow its social channels: @ONEGas, Facebook, LinkedIn and YouTube.

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.

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, costs, liquidity, 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 Part 1, 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.

APPENDIX

ONE Gas, Inc.

CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended

Twelve Months Ended

December 31,

2025

2024

2025

2024

(Thousands of dollars, except per share amounts)

Total revenues

$ 689,372

$ 630,703

$ 2,427,428

$ 2,083,558

Cost of natural gas

291,895

263,740

998,913

778,333

Operating expenses

Operations and maintenance

155,017

144,853

558,497

530,256

Depreciation and amortization

79,305

75,452

317,256

296,699

General taxes

23,423

22,348

95,295

79,371

Total operating expenses

257,745

242,653

971,048

906,326

Operating income

139,732

124,310

457,467

398,899

Other income, net

1,348

105

6,801

7,572

Interest expense, net

(36,460)

(39,760)

(142,809)

(147,235)

Income before income taxes

104,620

84,655

321,459

259,236

Income taxes

(18,314)

(7,633)

(57,235)

(36,386)

Net income

$ 86,306

$ 77,022

$ 264,224

$ 222,850

Earnings per share

Basic

$ 1.43

$ 1.35

$ 4.39

$ 3.92

Diluted

$ 1.42

$ 1.34

$ 4.37

$ 3.91

Average shares (thousands)

Basic

60,272

57,000

60,161

56,826

Diluted

60,777

57,415

60,513

57,033

Dividends declared per share of stock

$ 0.67

$ 0.66

$ 2.68

$ 2.64

APPENDIX

ONE Gas, Inc.

CONSOLIDATED BALANCE SHEETS

December 31,

2025

2024

Assets

(Thousands of dollars)

Property, plant and equipment

$ 9,734,150

$ 9,124,134

Accumulated depreciation and amortization

2,611,952

2,478,261

Net property, plant and equipment

7,122,198

6,645,873

Current assets

Cash and cash equivalents

10,620

57,995

Restricted cash and cash equivalents

23,107

20,542

Total cash, cash equivalents and restricted cash and cash equivalents

33,727

78,537

Accounts receivable, net

461,631

408,448

Materials and supplies

97,595

91,662

Income tax receivable

55,552

53,624

Natural gas in storage

176,451

161,184

Regulatory assets

49,504

101,210

Other current assets

41,424

35,216

Total current assets

915,884

929,881

Goodwill and other assets

Regulatory assets

256,225

278,006

Securitized intangible asset, net

233,786

265,951

Goodwill

157,953

Pension and other postemployment benefits

47,012

42,882

Other assets

120,026

105,025

Total goodwill and other assets

815,002

849,817

Total assets

$ 8,853,084

$ 8,425,571

APPENDIX

ONE Gas, Inc.

CONSOLIDATED BALANCE SHEETS

(Continued)

December 31,

2025

2024

Equity and Liabilities

(Thousands of dollars)

Equity and long-term debt

Common stock, $0.01 par value:

authorized 250,000,000 shares; issued and outstanding 62,692,392 shares at December 31, 2025;

issued and outstanding 59,876,861 shares at December 31, 2024

$ 627

$ 599

Paid-in capital

2,530,137

2,294,469

Retained earnings

909,355

809,606

Accumulated other comprehensive income (loss)

(126)

Total equity

3,440,123

3,104,548

Other long-term debt, excluding current maturities, net of issuance costs

2,133,018

2,131,718

Securitized utility tariff bonds, excluding current maturities, net of issuance costs

223,020

253,568

Total long-term debt, excluding current maturities, net of issuance costs

2,356,038

2,385,286

Total equity and long-term debt

5,796,161

5,489,834

Current liabilities

Current maturities of other long-term debt, net of issuance costs

249,674

Current maturities of securitized utility tariff bonds, net of issuance costs

30,566

28,956

Notes payable

737,400

914,600

Accounts payable

222,102

261,321

Accrued taxes other than income

75,568

75,608

Regulatory liabilities

57,277

22,525

Customer deposits

52,871

56,243

Other current liabilities

106,400

99,009

Total current liabilities

1,531,858

1,458,276

Deferred credits and other liabilities

Deferred income taxes

963,874

891,738

Regulatory liabilities

451,620

467,563

Other deferred credits

109,571

118,160

Total deferred credits and other liabilities

1,525,065

1,477,461

Commitments and contingencies

Total liabilities and equity

$ 8,853,084

$ 8,425,571

APPENDIX

ONE Gas, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31,

2025

2024

(Thousands of dollars)

Operating activities

Net income

$ 264,224

$ 222,850

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

317,256

296,699

Deferred income taxes

49,507

106,522

Share-based compensation expense

14,791

13,733

Provision for doubtful accounts

8,207

6,705

Proceeds from government securitization of winter weather event costs

—

Changes in assets and liabilities:

Accounts receivable

(61,390)

(67,289)

Materials and supplies

(5,933)

(14,013)

Income tax receivable

(1,928)

(49,677)

Natural gas in storage

(15,267)

25,913

Asset removal costs

(52,268)

(58,952)

Accounts payable

(35,397)

(15,014)

Accrued taxes other than income

(40)

6,815

Customer deposits

(3,372)

(5,944)

Regulatory assets and liabilities - current

68,397

(90,829)

Regulatory assets and liabilities - noncurrent

36,660

19,354

Other assets and liabilities - current

(708)

(17,091)

Other assets and liabilities - noncurrent

(3,906)

(11,371)

Cash provided by operating activities

578,833

368,411

Investing activities

Capital expenditures

(707,226)

(703,165)

Other investing expenditures

(12,724)

(10,402)

Other investing receipts

4,626

6,072

Cash used in investing activities

(715,324)

(707,495)

Financing activities

Borrowings (repayments) of notes payable, net

(177,200)

826,100

Issuance of other long-term debt, net of premiums and discounts

250,000

253,467

Long-term debt financing costs

(432)

(2,193)

Repayment of other long-term debt

(15)

(773,013)

Repayment of securitized utility tariff bonds

(29,493)

(27,939)

Issuance of common stock

212,183

252,379

Dividends paid

(160,705)

(149,456)

Tax withholdings related to net share settlements of stock compensation

(2,657)

(1,111)

Cash provided by financing activities

91,681

378,234

Change in cash, cash equivalents, restricted cash and restricted cash equivalents

(44,810)

39,150

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period

78,537

39,387

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period

$ 33,727

$ 78,537

Supplemental cash flow information:

Cash paid for interest, net of amounts capitalized

$ 138,987

$ 148,987

Cash paid for other state income taxes

$ 540

$ 366

Cash received for state income taxes

$ (1,523)

$ (4,546)

Cash paid (received) for federal income taxes

$ 10,113

$ (16,280)

APPENDIX

The following table reconciles the Company's GAAP net income and GAAP earnings per share to adjusted net income and adjusted net income per share:

ONE Gas, Inc.

Three Months Ended

Twelve Months Ended

December 31,

2025

2024

2025

2024

(Thousands of dollars, except per share amounts)

Net income - GAAP

$ 86,306

$ 77,022

$ 264,224

$ 222,850

Other income - deferred carrying cost (a)

3,359

458

6,745

1,986

Income taxes

—

Adjusted net income - non-GAAP

$ 89,665

$ 77,480

$ 270,969

$ 224,836

Earnings per share - GAAP

Basic

$ 1.43

$ 1.35

$ 4.39

$ 3.92

Diluted

$ 1.42

$ 1.34

$ 4.37

$ 3.91

Adjusted net income per share - non-GAAP

Basic

$ 1.49

$ 1.36

$ 4.50

$ 3.96

Diluted

$ 1.48

$ 1.35

$ 4.48

$ 3.94

Average shares (thousands)

Basic

60,272

57,000

60,161

56,826

Diluted

60,777

57,415

60,513

57,033

(a) The allowance for earnings on shareholders' investment capitalized for regulatory purposes but not for financial reporting purposes applied to property, plant and equipment placed in service, but not yet reflected in base rates as authorized by our regulators or state law. This increases book income but is non-taxable, creating a permanent tax difference.

ONE Gas, Inc.

2026 Financial Guidance: Reconciliation of non-GAAP to GAAP:

Low

Mid

High

(Thousands of dollars, except per share amounts)

Net income - GAAP

$ 294,000

$ 298,000

$ 302,000

Other income - deferred carrying cost (a)

11,890

11,919

12,000

Income taxes

—

Adjusted net income - non-GAAP

$ 305,890

$ 309,919

$ 314,000

Earnings per share - GAAP

Basic

$ 4.67

$ 4.73

$ 4.79

Diluted

$ 4.65

$ 4.71

$ 4.77

Adjusted net income per share - non-GAAP

Basic

$ 4.86

$ 4.92

$ 4.98

Diluted

$ 4.83

$ 4.89

$ 4.95

Average shares (thousands)

Basic

62,995

Diluted

63,350

APPENDIX

ONE Gas, Inc.

KGSS-I SECURITIZATION

In November 2022, Kansas Gas Service Securitization I, L.L.C. (KGSS-I) issued $336 million of securitized utility tariff bonds. KGSS-I used the proceeds from the issuance to purchase the Securitized Utility Tariff Property from Kansas Gas Service, pay for debt issuance costs, and reimburse Kansas Gas Service for upfront securitization costs paid on behalf of KGSS-I.

Revenues for the three months ended December 31, 2025, include $11.4 million associated with KGSS-I, which is offset by $7.8 million in operating and amortization expense and $3.6 million in interest expense, net. Compared to the same three month period last year, revenues increased $0.7 million and interest expense, net, decreased $0.4 million , offset by a $1.1 million increase in operating and amortization expense.

Revenues for the twelve months ended December 31, 2025, include $47.4 million associated with KGSS-I, which is offset by $32.6 million in operating and amortization expense and $14.7 million in interest expense, net. Compared to the same twelve month period last year, revenues increased $3.1 million and interest expense, net, decreased $1.5 million, offset by a $4.5 million increase in amortization and operating expense.

The following table summarizes the impact of KGSS-I on the consolidated balance sheets, for the periods indicated:

December 31,

2025

2024

(Thousands of dollars)

Restricted cash and cash equivalents

$ 23,107

$ 20,542

Accounts receivable

4,463

4,659

Securitized intangible asset, net

233,786

265,951

Total assets

$ 261,356

$ 291,152

Current maturities of securitized utility tariff bonds, net of issuance costs

$ 30,566

$ 28,956

Accounts payable

136

319

Accrued interest

5,894

6,568

Securitized utility tariff bonds, excluding current maturities, net of discounts and issuance costs

$4.3 million and $4.8 million, as of December 31, 2025 and December 31, 2024, respectively

223,020

253,568

Paid-in capital

1,680

1,681

Retained earnings

Total liabilities and equity

$ 261,356

$ 291,152

The following table summarizes the impact of KGSS-I on the consolidated statements of income, for the periods indicated:

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

(Thousands of dollars)

Operating revenues

$ 11,387

$ 10,649

$ 47,446

$ 44,390

Operating expense

(110)

(111)

(442)

(443)

Amortization expense

(7,688)

(6,559)

(32,164)

(27,668)

Interest income

125

132

551

671

Interest expense

(3,678)

(4,075)

(15,246)

(16,806)

Income before income taxes

145

144

Income taxes

—

(26)

Net income

$ 36

$ 145

$ 118

APPENDIX

ONE Gas, Inc.

INFORMATION AT A GLANCE

Three Months Ended

Year Ended

December 31,

(Unaudited)

2025

2024

2025

2024

(Millions of dollars)

Natural gas sales

629.1

573.4

2,196.3

1,864.1

Transportation revenues

39.1

37.4

144.9

138.7

Securitization customer charges

11.4

10.7

47.4

44.4

Other revenues

9.8

9.2

38.8

36.4

Total revenues

689.4

630.7

2,427.4

2,083.6

Cost of natural gas

291.9

263.7

998.9

778.3

Operating costs

178.4

167.3

653.8

609.6

Depreciation and amortization

79.3

75.5

317.3

296.7

Operating income

139.8

124.2

457.4

399.0

Net income

86.3

77.0

264.2

222.9

Capital expenditures and asset removal costs

184.1

190.4

759.5

762.1

Volumes (Bcf)

Natural gas sales

Residential

34.9

33.7

114.1

104.1

Commercial and industrial

11.2

10.8

40.3

36.9

Other

0.8

0.6

3.0

2.1

Total sales volumes delivered

46.9

45.1

157.4

143.1

Transportation

56.8

57.3

216.9

221.0

Total volumes delivered

103.7

102.4

374.3

364.1

Average number of customers (in thousands)

Residential

2,115

2,101

2,118

2,103

Commercial and industrial

161

162

163

Other

Transportation

Total customers

2,290

2,277

2,295

2,281

Heating Degree Days

Actual degree days

2,921

2,864

8,995

7,991

Normal degree days

3,777

3,784

9,730

9,728

Percent colder (warmer) than normal weather

(23) %

(24) %

(8) %

(18) %

Statistics by State

Oklahoma

Average number of customers (in thousands)

929

924

931

924

Actual degree days

1,002

985

3,082

2,783

Normal degree days

1,320

3,356

3,359

Percent colder (warmer) than normal weather

(24) %

(25) %

(8) %

(17) %

Kansas

Average number of customers (in thousands)

651

648

653

651

Actual degree days

1,520

1,433

4,463

3,863

Normal degree days

1,807

1,791

4,728

4,690

Percent colder (warmer) than normal weather

(16) %

(20) %

(6) %

(18) %

Texas

Average number of customers (in thousands)

710

706

711

706

Actual degree days

399

446

1,450

1,345

Normal degree days

650

673

1,646

1,679

Percent colder (warmer) than normal weather

(39) %

(34) %

(12) %

(20) %

Analyst Contact:

Erin Dailey

918-947-7441

Media Contact:

Leah Harper

918-947-7123

SOURCE ONE Gas, Inc.