ONE Gas (OGS) investor relations material

Executive summary

• Adjusted net income for Q2 2026 was $52.1 million ($0.82 per share), up from $32.7 million ($0.54) year-over-year; GAAP EPS was $0.74, up nearly 40%.

• For the first half of 2026, adjusted net income was $185.5 million ($2.94 per share), up from $152.8 million ($2.53) in 2025.

• Dividend of $0.68 per share declared in August 2026, annualized at $2.72 per share.

• Revenues declined 3% year-over-year for Q2 and 9% for the first half, primarily due to lower natural gas sales volumes, partially offset by new rates and customer growth.

• Growth strategy supported by constructive regulatory environments and broadening opportunities to serve large load customers, including gas-fired generation, data centers, and advanced manufacturing.

Financial highlights

• Q2 2026 revenues were $411.6 million, down from $423.7 million in Q2 2025; six-month revenues were $1,243.3 million, down from $1,359.0 million.

• Operating income for Q2 2026 was $82.7 million, up from $71.9 million in Q2 2025; year-to-date: $272.3 million, up from $252.4 million.

• New rates and Texas House Bill 4384 contributed approximately $16 million in new revenue.

• Capacity release revenues totaled $2.8 million year-to-date, with an additional $1.2 million expected through the injection season.

• O&M expenses increased 6.6% year-over-year in Q2, moderating from Q1.

Outlook and guidance

• 2026 adjusted net income guidance raised to upper half of $306 million–$314 million; adjusted EPS guidance to $4.83–$4.95.

• Capital investments for 2026 expected at $800 million, with $230 million for new customer extensions.

• Texas House Bill 4384 expected to contribute $0.42 to full-year adjusted EPS.

• Long-term O&M growth guidance remains 3%-4% annually.

• Dividend policy targets 1%-2% annual growth through 2030, with payout ratio moderating as self-funding increases.