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EarningsQ2 2026 Earnings Report
OGS Q2 2026 EPS Results
Actual EPS$0.82
Consensus EPS$0.63
Beat/MissBeat by +$0.19
One Year Ago EPS$0.53
OGS Q2 2026 Revenue Results
Actual Revenue$411.64M
Expected Revenue$410.29M
Beat/MissBeat by +$1.35M
YoY Revenue Growth-2.86%
Earnings Announcement Details
QuarterQ2 2026
Date08/04/2026
TimeAfter Close
Conference CallTuesday, August 4, 2026
OGS Upcoming Earnings
ONE Gas's next earnings date is estimated for November 2, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
OGS Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly positive: management reported strong Q2 results with double-digit EPS growth, raised its full-year earnings expectation to the upper half of guidance, and highlighted significant growth opportunities (large-load projects, installed meters, and a deep project funnel) supported by constructive regulatory developments (notably Texas HB 4384 and recent GRIP/GSRS filings). Operational initiatives (insourcing) and cost discipline are expected to reduce O&M growth in the back half of the year. Headwinds include elevated O&M and fuel costs, timing volatility from weather and legislative accruals, and the dependency on project convertibility and remaining equity funding. Overall, the positives — stronger-than-expected earnings, tightened guidance to the upside, legislative tailwinds, and a healthy project pipeline — meaningfully outweigh the operational and timing risks discussed on the call.Company Guidance
Strong Quarter — Adjusted EPS and Net Income Growth
Adjusted net income for Q2 was $52.1 million, or $0.82 per diluted share, versus $32.7 million or $0.54 in Q2 2025, a 52% increase in adjusted net income and a 52% increase in adjusted EPS year-over-year. GAAP EPS rose to $0.74 from $0.53, nearly a 40% increase.
First Half EPS Growth Despite Warm Weather
Through the first half of 2026 adjusted EPS grew 16% year-over-year despite winter weather that was ~25% warmer than normal, demonstrating resilience in underlying business performance.
Raised Full-Year Earnings Expectation (Upper Half of Guidance)
Management now expects adjusted net income in the upper half of prior guidance: $310 million to $314 million (previously $306M–$314M) and adjusted EPS of $4.89 to $4.95 (previously $4.83–$4.95).
Legislative Benefit Contribution (Texas HB 4384)
Texas House Bill 4384 materially aided results. Management expects the legislation to contribute approximately $0.42 to full-year adjusted EPS; roughly $0.28–$0.29 of benefit was reflected in the first half across GAAP and non-GAAP elements. Q2 included ~ $16 million of new revenue tied to new rates and benefits from the legislation.
Growth Projects and Capital Deployment
Completed ~$188 million of capital projects in Q2 (in line with prior year). Installed approximately 11,000 new meters through July. Company has 3 high-volume projects under contract representing ~ $15 million of incremental annual revenue and ~$175 million of associated capital (in-service dates 2H 2026–2028).
Large-Load Opportunity Funnel
Pipeline of opportunities remains robust: 3 contracted high-volume projects, 6 late-stage projects (previously cited potential for ~3 GW generation and up to 1 Bcf/day demand), and 17 additional early-stage opportunities across Kansas, Oklahoma and Texas — demonstrating multiple avenues for durable load-driven growth.
Operational Improvements and Insourcing Benefits
Insourcing initiatives continued: line locating activity in-sourced with damages down ~6% year-over-year; 40% of Watch and Protect in Oklahoma now insourced with full insourcing targeted by year-end. Management expects these efforts to lower future O&M growth and improve safety and quality.
Capital / Funding and Shareholder Return Actions
Forward equity sale agreements in place totaling ~$41.5 million (about half of 2026 need) and opportunistic ATM capacity remains. Board declared a quarterly dividend of $0.68 per share (unchanged quarter-to-quarter). Payout ratio has moderated (from ~68% historically to an implied ~57% GAAP this year) to support self-funding growth.
Cost and Interest Benefits
Q2 interest expense (excluding KGSS-I) decreased by ~$3.8 million year-over-year due in part to lower commercial paper rates. Gas supply team monetized capacity release activity: ~$0.9 million in Q2 and ~$2.8 million year-to-date, with ~ $1.2 million incremental opportunity remaining this injection season.
OGS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed