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ONE Gas (OGS) Q3 Earnings Surpass Estimates, Revenues Miss

ONE Gas, Inc.OGS posted third-quarter 2018 operating earnings of 31 cents per share, beating the Zacks Consensus Estimate of 28 cents by 10.7%.

However, earnings in the third quarter were lower than the year-ago level by 13.9%. Total natural gas sales volumes delivered were 11.6 Bcf in third-quarter 2018, down 2% from the same period last year, adversely impacting year-over-year earnings.

Total Revenues

Total revenues of $238.3 million lagged the Zacks Consensus Estimate of $251 million by 5.1%. Also, the figure declined 3.6% from $247.1 million in the prior-year quarter.

ONE Gas, Inc. Price, Consensus and EPS Surprise

ONE Gas, Inc. Price, Consensus and EPS Surprise | ONE Gas, Inc. Quote

Quarterly Highlights

Total operating expenses in the reported quarter increased 5.2% to $150.8 million from the year-ago quarter, due to increase in operating and maintenance expenses.

In the third quarter, the company served 9,000 more customers than the comparable year-ago period, primarily due to an increase in the residential customer base.

Operating income in the reported quarter was down 19.8% year over year to $36.2 million.

The company incurred interest expenses of $12.4 million, up 7.6% from the year-ago period.

Financial Highlights

On Sep 30, 2018, ONE Gas had cash and cash equivalents of $12.43 million compared with $14.4 million as of Dec 31, 2017.

Long-term debt (excluding current maturities) was $893.9 million as of Sep 30, 2018, down from the Dec 31, 2017 level of $1,193.3 million.

The company's cash flow from operating activities in the first nine months of 2018 was $436.8 million, up from $302.4 million recorded in the corresponding period of 2017.

Guidance

ONE Gas now expects its 2018 net income in the range of $167-$178 million and earnings per share within $3.15-$3.35. The guidance takes into consideration the positive impact of colder-than-normal weather and higher transport volumes.

The company now expects its 2018 capital expenditure in the range of $375-$390 million, with 70% of it directed toward system integrity and replacement projects.

Upcoming Releases

Atmos Energy Corp. ATO is expected to report fourth-quarter fiscal 2018 earnings on Nov 7. The Zacks Consensus Estimate is pegged at 37 cents.

Chesapeake Utilities Corp. CPK is expected to announce third-quarter 2018 results on Nov 8. The Zacks Consensus Estimate is pegged at 48 cents.

Just Energy JE is expected to report second-quarter fiscal 2019 earnings on Nov 7. The Zacks Consensus Estimate stands at 12 cents.

Zacks Rank

ONE Gas currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

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ONE Gas, Inc. (OGS): Free Stock Analysis Report

Atmos Energy Corporation (ATO): Free Stock Analysis Report

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Just Energy Group, Inc. (JE): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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