Slides
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June 2025 Investor Update
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HIGHLIGHTS 2 71% market share, the largest in Kansas 89% market share, the largest in Oklahoma 13% market share, the third largest in Texas ONE Gas, Inc. (NYSE: OGS) is a 100-percent regulated natural gas utility and is one of the largest natural gas utilities in the United States. ONE Gas provides natural gas distribution services to approximately 2.3 million customers in Kansas, Oklahoma and Texas. Its largest natural gas distribution markets by customer count are Oklahoma City and Tulsa, Oklahoma; Kansas City, Wichita and Topeka, Kansas; and Austin and El Paso, Texas. We deliver natural gas for a better tomorrow. About Us
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HIGHLIGHTS 3 Recent Highlights Creating Value for a Better Tomorrow Expect upper half of 2025 EPS guidance of $4.20-$4.32 & 2025-29 EPS growth of 4-6% We estimate $750 million in 2025 capital investments Replaced over 450 miles of transmission, main and service lines in 2024 ~24,000 new meter sets on a TTM basis as of April 30, 2025 Increased storage to ~61 Bcf, +20% from pre-Winter Storm Uri levels 8th consecutive AGA safety award for lowest rate of serious injury
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Our Strategy
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OUR STRATEGY 5 Serving a Growing Customer Base Growing demand for natural gas provides long-term growth opportunity • Natural gas is a core energy resource, backed by energy choice legislation in all jurisdictions • Economic growth is driving steady residential and commercial development, supporting system expansion • Nearly $25 billion in new manufacturing projects announced since 2021, increasing demand for infrastructure and energy solutions • Opportunities are emerging to support gas-fired power generation, helping meet manufacturing, electric grid and data center needs • Growth is well-distributed across our service territory, with Oklahoma City, Austin and El Paso seeing particularly strong momentum WSJ Top 25 “Hottest Job Markets” lists 4 cities in ONE Gas service territory1 #5 Oklahoma City #7 Austin #12 Kansas City #21 Tulsa Forbes Top 15 “Best Cities to Move to in 2024” includes 5 ONE Gas cities2 #3 Oklahoma City #4 Wichita #6 Tulsa #12 El Paso #14 Austin 1 The Wall Street Journal partnered with Moody’s Analytics to rank markets based on unemployment rate, labor-force participation rate, change in employment levels, size of labor forces and wages. 2 Forbes Home experts ranked cities based on value, quality of life, job market and desirability.
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OUR STRATEGY 6 Enhancing Capacity & Improving Operational Efficiency Building a solid foundation for sustainable growth Improved processes and workforce investments increase operating efficiency, capacity and capabilities Investment in workforce development fosters strong performance and retention Managing expenses helps preserve customer affordability Coordinated capital execution supports safety, reliability, and system expansion and allows for efficient capital deployment Mainline extension projects provide flexibility in serving new commercial, industrial, power generation and housing developments In-sourcing key positions creates efficiencies that help drive down O&M expenses
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Financial Outlook
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FINANCIAL OUTLOOK 8 2025 Guidance Summary1 EARNINGS OUTLOOK • Net income for 2025 in a range of $254 - $261 million; expected to achieve the upper half of the range • EPS range of $4.20 - $4.32 per diluted share; expected to achieve the upper half of the range • Assumes 60.5 million diluted shares outstanding • CAPITAL INVESTMENTS • 2025 capital investments of $750 million, with approximately $180 million attributed to customer growth • Average rate base of $5.8 billion in 2025 • FINANCING ACTIVITIES • Completed debt issuance in August 2024; the next maturity not until 2029 • Expect adjusted CFO/Debt of 19-20%2 • Forward sale agreements have already been executed, satisfying 2025 needs Creating long-term value and serving a growing customer base 1 Issued Dec. 4, 2024 2 Internal estimate based on Moody's methodology
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FINANCIAL OUTLOOK 9 Financing Requirements and Activities 1 2025 expectation, before changes in working capital. See non-GAAP information in Appendix. 2 Expected net proceeds of ~$227M had all the shares settled as of May 9, 2025. 2.5 M shares to be settled by Dec. 31, 2026. 403,000 shares to be settled by Dec. 31, 2025. 2025 dividends and capital investments primarily funded by cash flow from operations of approximately $600-$650 million1 • Expected 2025 short- and long-term financing need of $270-$300 million ~$1.5 billion net long-term financing needs through 2029, of which ~40% is expected to be equity issuances. 2025 needs have been met. • Forward sale agreements covering ~2.9 M shares have already been executed at prices averaging $78.22/share (~$227 million in total2) • All equity needs have been met for 2025; forward agreements cover a portion of 2026 needs Maintaining balance sheet strength while investing in growth
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FINANCIAL OUTLOOK 10 Five-Year Financial Highlights CAPITAL INVESTMENTS & RATE BASE • Capital investments of ~$4 billion ̶ $2.8 billion investment in system integrity and replacement projects ̶ Growth capital of $1 billion • Estimated average 2025 rate base1 of $5.8 billion • Average annual rate base growth of 7 – 9% • Expect adjusted CFO/Debt to rise to ~21% by 20292 Investing in a reliable and growing system AVERAGE ANNUAL GROWTH RATES • Based on 2024 EPS of $3.91 • Long-term net income growth of 7 – 9% ̶ For 2024-2029 period ̶ In addition to capital investment, key drivers include: ▪Regulatory outcomes ▪Operating cost increases averaging ~4% annually • Long-term earnings per diluted share growth of 4 – 6% ̶ For 2024-2029 period, expect to be at the high end of the range • Dividend growth of 1 – 2%3 ̶ Balances shareholder returns with internal investment in growth ̶ Holds payout ratio proximate to our 55 – 65% target 1 For definition of average rate base, see Appendix 2 Internal estimate based on Moody's methodology 3 Subject to Board approval
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FINANCIAL OUTLOOK 11 $2.07 $2.24 $2.65 $3.08 $3.25 $3.51 $3.68 $3.85 $4.08 $4.14 $3.91 $4.26 $5.22 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025G 2029* Long-Term EPS Performance & Outlook EPS CAGR 4-6% Note: 2025 EPS represents the mid-point of the guidance range. *2029 EPS is implied by the high end of the guided 4-6% 2024-2029 EPS CAGR. EPS CAGR 4-6% 5-Year Forecast (2024-2029*) 10-Year (2014-2024) 10-Year (2015-2025G) 15-Year (2014-2029*) ~6.0% 6.5% 6.5% 6.3%
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FINANCIAL OUTLOOK 12 Balance Sheet Strength Strong credit rating and financing flexibility RATING AGENCY RATING OUTLOOK Moody’s A3 Stable S&P A- Stable REVOLVING CREDIT FACILITY • $1.35 billion limit • Expires March 2028 COMMERCIAL PAPER PROGRAM • $1.35 billion limit SENIOR DEBT MATURITIES 1 (MILLIONS) ~4.3% weighted average coupon rate 2 1 Excluding KGSS-I long-term debt associated with Winter Storm Uri of ~$273M at 5.486% due 2032. Debt associated with KGSS-I is non-recourse to ONE Gas. 2 As of April 30, 2025
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Capital Investments
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CAPITAL INVESTMENTS 14 $383 $449 $525 $552 $540 $138 $177 $178 $178 $179 $21 $32 $26 $32 $31 $202 $216 $234 $255 $283 2021 2022 2023 2024 2025G CAPITAL INVESTMENTS (MILLIONS) System Integrity Customer Growth Other/IT Depreciation $542 $658 $729 $762 ~$750 Well-Defined Capital Investment Plan Investments ~3x depreciation Kansas $151 Oklahoma $288 Texas $311 2025G CAPITAL INVESTMENTS BY STATE (MILLIONS) Note: Capital investments include asset removal costs and accruals
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CAPITAL INVESTMENTS 15 $215 $257 $286 $306 $288 $82 $88 $93 $100 $108 2021 2022 2023 2024 2025G OKLAHOMA Capital Investments $139 $159 $185 $169 $151 $72 $75 $78 $84 $92 2021 2022 2023 2024 2025G KANSAS 2025G: 1.6X DEPRECIATION $188 $242 $256 $287 $311 $48 $53 $63 $71 $83 2021 2022 2023 2024 2025G TEXAS 2025G: 3.7X DEPRECIATION (MILLIONS) Note: Capital investments include asset removal costs and accruals 2025G: 2.7X DEPRECIATION
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CAPITAL INVESTMENTS 16 $1.38 billion $2.57 billion $1.85 billion 2025G AVERAGE RATE BASE* BY STATE TOTAL: $5.8 BILLION Kansas Oklahoma Texas Rate Base $4.25 $4.69 $5.15 $5.52 $5.80 2021 2022 2023 2024 2025G AVERAGE RATE BASE* (BILLIONS) * See Appendix for definition ~5% growth expected in 2025
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Regulatory Update
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REGULATORY UPDATE 18 Active Regulatory Calendar COMPLETED JURISDICTION APPROVED RATES (MILLIONS) EFFECTIVE DATE EQUITY RATIO RETURN ON EQUITY Central-Gulf GRIP $15.4 M May-2025 59.58% 9.7% West-North GRIP $8.2 May-2025 59.74% 9.6% Central-Gulf – Rate Case $19.3 M Dec-2024 59.58% 9.7% Kansas – Rate Case $35.0 M (net) Nov-2024 60.21%* 9.5%* Rio Grande Valley – GRIP $3.6 M Sep-2024 59.10% 9.7% Oklahoma – PBRC $31.4 M Jul-2024 58.50% 9.4% West-North – GRIP $8.5 M Jul-2024 59.74% 9.6% Central-Gulf – GRIP $12.2 M Jun-2024 59.00% 9.5% Rio Grande Valley – Rate Case $5.9 M Jan-2024 59.10% 9.7% * Kansas Gas Service’s regulatory filings approved in February 2019 and October 2024, respectively, settled without a stated rate base, rate of return, authorized debt/equity ratio or authorized return on equity within the settlement. This reflects Kansas Gas Service’s estimate of rate base from those rate cases, adjusted for approved GSRS filings and return on equity embedded in the pre-tax carrying charge utilized in its GSRS filings. IN PROGRESS JURISDICTION RATES REQUESTED (MILLIONS) FILING DATE EQUITY RATIO RETURN ON EQUITY Kansas – GSRS $7.2 M Apr-2025 60.21%* 9.5%* Rio Grande Valley - GRIP $3.2 M Apr-2025 59.10% 9.7% Oklahoma – PBRC $41.5 M Feb-2025 58.50% 9.4%
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REGULATORY UPDATE 19 Oklahoma Natural Gas PBRC filed February 2025 Performance-based rate change (PBRC) interim filing for annual rate reviews between full rate cases allows recovery of capital investments and operating expenses. Current filing, Return on Equity 9.40%, 58.50% equity ratio File PBRC annually in 1st Quarter; next rate case required by June 2027 2025 PBRC – ESTIMATED EFFECTIVE DATE JUNE 2025 Incremental Revenue $41.5 million annual revenue increase requested Capital Expenditures $272 million Pre-Tax Rate of Return 8.94% Customer Impact $2.12 per month increase (for typical residential customer, net of one-time annual credit for excess deferred income taxes, or EDIT) $0.70 per month increase (for typical low-income residential customer, net of one-time annual EDIT credit) $13.2 million one-time annual customer credit for EDIT
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REGULATORY UPDATE 20 Kansas Gas Service GSRS filed April 2025 File GSRS Annually in August, rate case filing as needed; next rate case required 2030 * Kansas Gas Service’s regulatory filing approved in October 2024 settled without a determination of rate base, rate of return, authorized debt/equity ratio or authorized return on equity within the settlement but stipulated a pre-tax rate of return of 8.97% for use in GSRS filings. This reflects Kansas Gas Service’s estimate of rate base from that rate case adjusted for approved GSRS filings and return on equity embedded in the pre-tax carrying charge utilized in its GSRS filing and staff's testimony in the rate case. Approved Oct. 2024 rate case, 8.97% pre-tax rate of return, Return on Equity 9.50%* 2025 GSRS FILING Incremental Surcharge Revenue $7.2 million annual revenue increase requested Capital Expenditures $61.8 million Pre-Tax Carrying Charge 8.97%; ROE embedded in GSRS pre-tax carrying charge is estimated to be ~9.50% Customer Impact $0.71 per month increase for average residential customer Gas System Reliability Surcharge (GSRS) allows for recovery of investments in safety-related projects (includes physical and cyber security) and government-mandated relocations between rate cases
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REGULATORY UPDATE 21 Kansas Gas Service Approved October; rates effective November 2024 2024 RATE CASE FILING Incremental Revenue $35 million net increase; $70 million total increase ($35 million already recovered through GSRS) Return on Equity N/A Equity Ratio N/A GSRS Pre-Tax Rate of Return 8.97% Customer Impact $3.82 per month increase for average residential customer, net of GSRS already collected in customer bills Staff Testimony On July 1, 2024, Staff filed direct testimony supporting actual capital structure (~60.2%) and a 9.5% return on equity File GSRS Annually in August, rate case filing as needed; next rate case required 2030 * Kansas Gas Service’s regulatory filing approved in October 2024 settled without a determination of rate base, rate of return, authorized debt/equity ratio or authorized return on equity within the settlement but stipulated a pre-tax rate of return of 8.97% for use in GSRS filings. This reflects Kansas Gas Service’s estimate of rate base from that rate case adjusted for approved GSRS filings, the return on equity embedded in the pre-tax carrying charge utilized in its GSRS filing and staff's testimony in the rate case. Approved Oct. 2024 rate case, 8.97% pre-tax rate of return, Return on Equity 9.50%*
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REGULATORY UPDATE 22 Texas Gas Service Central-Gulf GRIP filed February; rates effective May 27 CENTRAL-GULF GRIP Incremental Surcharge Revenue $15.4 million annual revenue increase Capital Expenditures $118 million Pre-Tax Rate of Return 9.09% Customer Impact $3.36 per month increase for average residential customer File GRIP Annually in February, rate case filing as needed; next rate case required Nov. 2030 Gas Reliability Infrastructure Program (GRIP) allows for recovery of capital investments made between rate cases Current regulatory filing, Return on Equity 9.70%
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REGULATORY UPDATE 23 Texas Gas Service West-North GRIP filed February; rates effective May 27 WEST-NORTH GRIP Incremental Surcharge Revenue $8.2 million annual revenue increase Capital Expenditures $59 million Pre-Tax Rate of Return 8.91% Customer Impact $1.81 per month increase for average residential customer File GRIP Annually in February, rate case filing as needed; next rate case required Dec. 2028 Gas Reliability Infrastructure Program (GRIP) allows for recovery of capital investments made between rate cases Current regulatory filing, Return on Equity 9.60%
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REGULATORY UPDATE 24 Texas Gas Service Rio Grande Valley GRIP filed in April 2025 RIO GRANDE VALLEY GRIP – ESTIMATED EFFECTIVE DATE SEP. 2025 Incremental Surcharge Revenue $3.2 million annual revenue increase requested Capital Expenditures $21.4 million Pre-Tax Rate of Return 8.94% Customer Impact $2.63 per month increase for incorporated and environs small and large residential customers File GRIP Annually in 2nd Quarter, rate case filing as needed; next rate case required Feb. 2030 Gas Reliability Infrastructure Program (GRIP) allows for recovery of capital investments made between rate cases Current regulatory filing, Return on Equity 9.70%, 8.94% pre-tax rate of return
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REGULATORY UPDATE 25 Texas Gas Service Approved November; rates effective December 2024 CENTRAL-GULF 2024 RATE CASE FILING Incremental Surcharge Revenue $19.3 million annual revenue increase approved Capital Expenditures $0 million* Pre-Tax Rate of Return 9.09% Customer Impact $1.84 per month increase for typical small residential customers $10.66 per month increase for typical large residential customers File GRIP Annually in February, rate case filing as needed; next rate case required Nov. 2030 Approved Nov. 2024 rate case, Return on Equity 9.70%, 59.58% equity ratio * Incremental capex subsequent to February ’24 GRIP filing. $342 million of capital expenditures had already been incorporated into rates through GRIP filings since the June 2019 full rate case.
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Customer Affordability
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CUSTOMER AFFORDABILITY 27 14.94¢ 12.24¢ 14.22¢ 6.49¢ 4.50¢ 4.40¢ Texas Oklahoma Kansas KWH EQUIVALENT ELECTRICITY VS. NATURAL GAS ² Avg. retail price of electricity/kWh ³ ONE Gas delivered cost of natural gas/kWh 3.2x advantage2.3x advantage 2.7x advantage 3-to-1 Average Advantage 1 in ONE Gas Territories Natural gas price advantage over electricity 1 Calculated as the weighted average – using the proportionate volumes and revenues based on usage and the charges described below across Texas, Oklahoma, and Kansas – of the ratio between the ONE Gas delivered cost of natural gas per kilowatt hour (kWh) equivalent to the average retail price of electricity per kWh. Kansas customers have the highest per household usage, followed by Oklahoma, then Texas. 2 Source: United States Energy Information Agency, www.eia.gov, for the 12-month period ended Dec. 31, 2024. 3 Represents the delivered cost of natural gas per kilowatt hour (kWh) equivalent to a residential customer, including the cost of the natural gas supplied, fixed customer charge, delivery charges and charges for riders, surcharges and other regulatory mechanisms associated with the services we provide (excluding securit ization) for the year ended Dec. 31, 2024.
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CUSTOMER AFFORDABILITY 28 Average Annual Residential Customer Bill Cash flow stability • Assumes ~$5.15/Mcf average cost of delivered gas for 2025 • Non-commodity costs remain tightly controlled * Including transportation, storage, and hedging costs, and excluding securitization charges. Securitization charges expected to avg ~$6/mo. • ~92% of customers are residential • ~70% of revenue less the cost of gas is fixed charges Focus remains on customer affordability $29 $29 $30 $32 $33 $33 $33 $34 $38 $40 $42 $46 $32 $22 $17 $19 $22 $21 $17 $23 $43 $33 $22 $25 $60 $50 $46 $51 $55 $54 $50 $58 $81 $73* $64* $71* 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E AVERAGE MONTHLY RESIDENTIAL CUSTOMER BILL Margin, Taxes and Other Cost of Gas
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Delivering Foundational Energy
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CLEAN ENERGY SOLUTIONS 30 Reducing Emissions Emissions Reduction Goal By 2035, we expect to achieve a 55% reduction in Scope 1 emissions due to leaks from mains and services, measured from a 2005 baseline and accounting for projected system growth. As of December 31, 2024, we have achieved a 51% reduction, keeping us on track to meet our goal. Incentive program tied to emissions goal • Short-term incentive (STI) metrics include one financial metric and four operational metrics focused on safety. • One STI metric is tied to our emissions reduction goal, which is driven by our safety-focused pipeline replacement and protection program. View our 2024 Sustainability Report at onegas.com Operating in an environmentally responsible manner
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CLEAN ENERGY SOLUTIONS 31 Emissions Reduction Strategy Tightening our system • Pipeline replacement and protection replaces higher emitting pipe with lower-emitting pipe • Advanced leak detection reduces time leaks are active Reducing customer gas usage • Energy efficiency and customer education programs encourage customers to use less energy, thereby avoiding emissions Supporting development and deployment of lower-carbon fuels • Oklahoma Natural Gas opt-in RNG tariff approved • Active project in Austin will include a renewable natural gas interconnection • Participating in hydrogen development and demonstration projects Aligned with overall strategy
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CLEAN ENERGY SOLUTIONS 32 ESG Ratings & Company Recognition Robust Disclosures • Full alignment with SASB • Following TCFD recommendations • Disclosure of Scope 1 and 2 emissions Additional governance documents and reports • Statement on Human Rights (2023) • EEO-1 report (2022 and 2023) • Supplier Code of Conduct (2022) Boosted employee engagement scores • 8th consecutive year of employee engagement scores in top quartile of Gallup’s company database • Increased memberships in employee-led resource groups RATING ORGANIZATION 2024 2023 2022 MSCI AAA AA AA Sustainalytics 25.8 28.6 30.9 ISS Corporate Rating C+/Prime C+/Prime C- Rating Scales: MSCI: AAA, AA, A, BBB, BB, B, CCC Sustainalytics: Risk negligible (0-10), low (10-20), medium (20-30), high (30-40), severe (40+) ISS Corporate Rating: (A+ = excellent performance, D- = poor performance; prime rating varies by sector) Green = improved score
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Appendix
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APPENDIX 34 Sustainable Business Model ▪ 100% regulated natural gas distribution utility ▪ Conservative financial profile with investment- grade credit ratings Focused Business Strategy ▪ 20+ year vintage pipeline replacement program using risk- based approach ▪ Significant organic growth opportunities Regulatory Construct ▪ 3 states, multiple jurisdictions ▪ ~ 90% of capital expenditures included in annual filings ▪ Effective weather normalization Capital Investment Opportunities Cash Flow Stability ▪ ~ 70% of fixed charges for recovery of revenue requirement ▪ ~ 92% of customers are residential
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APPENDIX 35 Sustainable Business Model ▪ Customer growth helps moderate per-customer costs ▪ Leveraging technology to drive efficiency and manage operating expenses Safe & Reliable Energy ▪ Industry-leading performance in employee safety ▪ Demonstrated system resiliency and reliability Delivering Foundational Energy ▪ Committed to sustainability ▪ Energy efficiency and education programs ▪ Significant RNG potential within service territory Customer Affordability
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APPENDIX 36 INCORPORATED ENTITY 100% regulated natural gas distribution No levered holding company; all debt issued by ONE Gas, Inc.1 Division capital structures match Corporate capital structure Corporate Structure and State Figures 1 Kansas Gas Service Securitization I, LLC, formed as wholly owned subsidiary of ONE Gas in 2022, holds ~$287M as of Dec. 31, 2024, of securitized bonds relating to Winter Storm Uri. The holders of the securitized bonds have no recourse against ONE Gas. 2 Figures in chart as of Dec. 31, 2024 KEY FIGURES 2 Average Number of Customers 651,000 924,000 706,000 Distribution and Transmission Miles 13,400 20,300 11,600 Fixed Charges - Sales Customers 56% 90% 70% Average Annual Heating Degree Days - Normal 4,690 3,359 1,679
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APPENDIX 37 Authorized Rate Base $1,616 $1,726 $1,854 $2,067 $2,273 2020 2021 2022 2023 2024 OKLAHOMA (MILLIONS) $1,133 $1,197 $1,261 $1,330 $1,412 2020 2021 2022 2023 2024 KANSAS $1,047 $1,239 $1,336 $1,528 $1,720 2020 2021 2022 2023 2024 TEXAS As of December 31st, 2024
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APPENDIX 38 Rate Base Definition Authorized Rate Base $5.4 billion (as of March 31, 2025) • Includes capital investments authorized in most recent rate cases and interim filings • Excludes any capital investments since last approved rate cases or filings 2025 Estimated Average Rate Base $5.8 billion • Average of rate base per book at beginning and end of year • Includes capital investments and other changes in rate base not yet approved for recovery
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APPENDIX 39 Comprehensive Regulatory Mechanisms KEY MECHANISMS: KANSAS OKLAHOMA TEXAS General Rate Case Filing Deadline 2030 June 2027 Central-Gulf Nov. 2030 West-North Dec. 2028 Rio Grande Valley Feb. 2030 Interim capital recovery GSRS PBRC GRIP Weather normalization ✓ ✓ ✓ Purchased gas riders (including gas cost portion of bad debts) ✓ ✓ ✓ Pension and other post-retirement benefits trackers ✓ ✓ ✓ Energy efficiency/conservation programs ✓ ✓ Cost-of-service adjustment ✓
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APPENDIX 40 KANSAS OKLAHOMA TEXAS Kansas Corporation Commission Oklahoma Corporation Commission “Home Rule” with three jurisdictions; Texas Railroad Commission has appellate authority Appointed by the governor to four-year staggered terms Elected to six-year staggered terms Railroad Commission elected to six-year staggered terms Name Party Term Ends Name Party Term Ends Name Party Term Ends Andrew J. French (Chair) Ind March 2028 Kim David (Chair) Rep Jan. 2029 Christi Craddick (Chair) Rep Jan. 2031 Annie Kuether Dem March 2027 Brian Bingman Rep Jan. 2031 Wayne Christian Rep Jan. 2029 Dwight Keen Rep March 2026 Todd Hiett Rep Jan. 2027 Jim Wright Rep Jan. 2027 Regulatory Construct Governance
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APPENDIX 41 (MILLIONS) 2025 GUIDANCE* Net income $ 257 Depreciation and amortization 298 Deferred taxes 50 Other 23 Cash flow from operations before changes in working capital $ 628 Non-GAAP Reconciliation Cash flow from operations before changes in working capital * Amounts shown are estimated midpoints as contemplated in 2025 guidance Non-GAAP Information: ONE Gas has disclosed in this presentation cash flow from operations before changes in working capital, which is a non-GAAP financial measure. Cash flow from operations before changes in working capital is used as a measure of the company's financial performance. Cash flow from operations before changes in working capital is defined as net income adjusted for depreciation and amortization, deferred income taxes, and certain other noncash items. This non-GAAP financial measure is useful to investors as an indicator of financial performance of the company to generate cash flows sufficient to support our capital expenditure programs and pay dividends to our investors. ONE Gas cash flow from operations before changes in working capital should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP. This non-GAAP financial measure excludes some, but not all, items that affect net income. Additionally, this calculation may not be comparable with similarly titled measures of other companies. A reconciliation of cash flow from operations before changes in working capital to the most directly comparable GAAP measure are included in this presentation.
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APPENDIX 42 Investor Information Contact information and forward-looking statements Statements contained in this presentation that include or refer to Company expectations, our business outlook, our future plans or predictions relating to any matters should be considered forward-looking statements that are covered by the safe harbor provisions of the Private Securi ties Litigation Reform Act of 1995, the Securities Act of 1933 and the Securities and Exchange Act of 1934, each as amended. All statements, other than statements of historical facts, included in this presentation are forward-looking statements. Words such as “anticipates,” “expects,” “projects,” “inten ds,” “goals,” “plans,” “potential,” “might,” “believes,” “target,” “objective,” “strategy,” “opportunity,” “pursue,” “budgets,” “outlook,” “trends,” “focus,” “on schedule,” “on track,” “poised,” “slated,” “seeks,” “estimates,” “forecasts,” “guidance,” “scheduled,” “continues,” “may,” “will,” “would,” “should,” “could,” “likely,” and variations of such words and similar expressions are intended to identify such forward-looking statements. One should not place undue reliance on forward-looking statements. In addition, statements that refer to or are based on estimates, forecasts, projections, uncertain events or assump tions, including statements relating to market opportunities, future products or processes and the expected availability and benefits of such products or processes, and anticipated trends in our businesses or the markets relevant to them, including those developments relating to regulation and litigation trends and developments, also identify forward-looking statements. Such statements are based on management's expectations as of the date of this investor pre sentation, unless an earlier date is indicated, and involve many risks and uncertainties, known and unknown, that could cause actual results, perf ormance or achievements to differ materially from those expressed or implied in these forward -looking statements. It is important to note that the actual results could differ materially from those projected in such forward -looking statements. Important risks and uncertainties that could cause actual results to differ materially from the company's expectations include, but are not limit ed to, our ability to recover, manage and maintain costs; regulatory or legislative changes in the jurisdictions in which we operate; the length and severit y of unpredictable events, including, but not limited to, pandemics, threatened terrorism, war or cyber -attacks or breaches, or extreme weather events, inc luding those related to climate change; the competitive implications of alternative sources of energy and efforts to conserve energy; our competitive position, including, but not limited to our ability to secure competitive sourcing and pricing and our ability to compete with respect to expansion and in frastructure; the economic climate and our comparable economic position; our access to capital and the restrictions that result from our current capital arrange ments; the effectiveness of our risk mitigation and compliance efforts; the uncertainties of any estimates or assumptions we use in our projections; our stra tegic and transactional efforts and future plans; and costs and uncertainties relating to our workforce, and other risks and uncertainties, including those t hat are set forth in ONE Gas’ earnings release dated May 5, 2025, which is included as an exhibit to ONE Gas’ Form 8 -K furnished to the SEC on such date. For additional information regarding these and other factors that could cause actual results to differ materially from such f orward-looking statements, refer to ONE Gas’ Securities and Exchange Commission (SEC) filings., including the Company's most recent reports on Forms 10 -K and 10-Q. Copies of the Company’s Form 10-K, 10-Q and 8-K reports may be obtained by visiting our “Investors” website under “Financials & Filings” at https://www.onegas.com/investors/financials-and-filings/quarterly-results/default.aspx or the SEC’s website at www.sec.gov. Other unpredictable or unknown factors not discussed in this presentation could also have material adverse effects on the Company, its operations or the outcomes described in the forward-looking statements in this presentation or in the Company’s filings with the SEC. All future cash dividends discussed in this presentation are subject to the approval of the ONE Gas board of directors. All references in this presentation to guidance are based on news releases or disclosures issued on or before May 5, 2025, and are not being updated or affirmed by this presentation. ONE Gas does not undertake, and expressly disclaims any duty, to update any statement made in th is presentation, whether as a result of new information, new developments or otherwise, except to the extent that disclosure may be required by law. ONE Gas, Inc. 15 E 5th Street Tulsa, OK 74103 www.onegas.com Erin Dailey Director, Investor Relations and Sustainability (918) 947-7411 erin.dailey@onegas.com