Core Insights - One Gas reported Q2 2025 results with GAAP earnings per share at $0.53, slightly above estimates, while GAAP revenue was $423.7 million, missing expectations by $108 million [1][5] - Net income increased by 17.6% year over year to $32.0 million, driven by regulatory rate increases and cost controls [1][6] - Management raised full-year earnings and net income guidance for 2025, reflecting positive operational execution [1][12] Financial Performance - Q2 2025 EPS was $0.53, matching estimates, and up 10.4% from $0.48 in Q2 2024 [2] - Revenue of $423.7 million fell short of the $531.6 million estimate, but showed a 19.6% increase from $354.2 million in Q2 2024 [2] - Operating income rose to $71.9 million, a 3.7% increase from $69.3 million in Q2 2024 [2] - Capital expenditures were $190.1 million, slightly down from $194.6 million in Q2 2024 [2] Regulatory Developments - The company secured several rate increases totaling $15.4 million and $8.2 million for Texas operations, and $7.2 million for Kansas operations, effective in mid-2025 [7] - Regulatory weather normalization mechanisms helped stabilize earnings despite weather-related demand fluctuations [7] Operational Highlights - Total gas sales volumes increased to 18.9 billion cubic feet, up from 15.9 billion cubic feet in Q2 2024, although transportation volumes declined by 6.9% year over year [5][6] - Operations and maintenance expenses rose by 7.5% year over year, primarily due to higher labor and benefit costs [6] Capital Investments and Sustainability - Capital spending focused on safety, reliability, and growth, with $190.1 million invested in Q2 2025 [8][11] - The company is investing in renewable natural gas facilities to align with sustainability goals and regulatory interests [11] Future Outlook - Full-year net income guidance was raised to $261–267 million, with EPS guidance adjusted to $4.32–4.42 [12] - Capital expenditure guidance remains at approximately $750 million, indicating ongoing investment in system upgrades [12] - Key areas to monitor include the success of closing further rate cases and progress on alternative energy projects [13]

Financial Data and Key Metrics Changes - Net income for the second quarter was $32 million or $0.53 per diluted share, compared to $27.2 million or $0.48 in the same period last year, reflecting a year-over-year increase [4][8] - The company raised its full-year 2025 financial guidance, now expecting net income between $261 million and $267 million and earnings per diluted share between $4.32 and $4.42, both 2.5% above the respective midpoints of the initial guidance ranges [5][7] - Operating and maintenance expenses increased by 7.5% year over year in the second quarter, primarily due to higher labor-related expenses [8] Business Line Data and Key Metrics Changes - Revenues for the second quarter increased by approximately $21.1 million from new rates and $1.5 million from continued customer growth [8] - The company installed nearly 11,400 new meters through the first half of the year, sustaining a momentum of over 9% year-over-year increase in new customer additions [16] Market Data and Key Metrics Changes - The Oklahoma Corporation Commission approved a $41.1 million revenue increase effective in June, and Texas Gas Service filed a rate case requesting a $41.1 million increase [11][12] - The Kansas Corporation Commission approved a $7.2 million increase under the gas system reliability surcharge statute, with new rates taking effect this month [13] Company Strategy and Development Direction - The company is focused on disciplined execution and long-term growth, with a commitment to system integrity and responding to community needs [18][39] - The Austin system reinforcement project is highlighted as a significant capital investment aimed at expanding system capacity to support growing demand [14][40] - The company is pursuing opportunities in data centers, advanced manufacturing, and utility-scale generation, aiming to enhance system resiliency and align with customer needs [17][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong operational and financial results for the first half of the year and the positive impact of Texas House Bill 4,384 on financials [4][5] - The company remains optimistic about growth opportunities in Texas and other jurisdictions, driven by positive migration trends and job creation [39][40] Other Important Information - The company declared a dividend of $0.67 per share, unchanged from the previous quarter [10] - The company completed $190 million in capital projects during the second quarter, in line with the same period last year [14] Q&A Session Summary Question: Impact of House Bill 4,384 on financials - Management explained that the bill extends deferrals and accruals to all capital expenditures in Texas, potentially adding $4 million to $5 million of annual pretax earnings [24][28] Question: Long-term growth rate considerations - Management confirmed that the updated midpoint of guidance for 2025 will be used as the base for the new five-year range [34] Question: Texas capital plans and growth - Management stated that there will be no significant changes to the capital plans due to the bill, but growth in Texas jurisdictions is expected to continue [38] Question: Texas rate case and consolidation benefits - Management highlighted that consolidation will lead to efficiency, reducing administrative costs and benefiting customers [47] Question: Opportunities in power load growth and data centers - Management indicated that there are significant inbound inquiries for data center opportunities, and they are pursuing projects that enhance system resiliency [50]

Financial Data and Key Metrics Changes - Net income for Q2 2025 was $32 million or $0.53 per diluted share, compared to $27.2 million or $0.48 in the same period last year, reflecting a year-over-year increase [4][7] - The company raised its full-year 2025 financial guidance, now expecting net income between $261 million and $267 million and earnings per diluted share between $4.32 and $4.42, both 2.5% above the respective midpoints of the initial guidance ranges [5][6] Business Line Data and Key Metrics Changes - Revenues for the second quarter increased by approximately $21.1 million from new rates and $1.5 million from continued customer growth [7] - Operating and maintenance expenses increased by 7.5% year-over-year, primarily due to higher labor-related expenses [7] Market Data and Key Metrics Changes - The Oklahoma Corporation Commission approved a $41.1 million revenue increase effective June, and Texas Gas Service filed a rate case requesting a $41.1 million increase [12][13] - The company installed nearly 11,400 new meters in the first half of the year, with a year-over-year increase of over 9% in new customer additions [16] Company Strategy and Development Direction - The company is focused on disciplined execution and long-term growth, with significant capital investments in system safety and reliability [18] - The Austin system reinforcement project is the largest capital investment since the company's separation from OneOak in 2014, aimed at expanding system capacity to support growing demand [15][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and the positive impact of Texas House Bill 4,384, which supports the recovery of system investments [5][25] - The company remains committed to balancing system needs with customer impact, emphasizing affordability in planning and implementation of rate mechanisms [12][14] Other Important Information - The company completed $190 million in capital projects during the second quarter, consistent with the same period last year [15] - The Board of Directors declared a dividend of $0.67 per share, unchanged from the previous quarter [10] Q&A Session Summary Question: Impact of House Bill 4,384 on financials - Management explained that House Bill 4,384 extends deferrals and accruals to all capital expenditures in Texas, potentially adding $4 million to $5 million of annual pretax earnings [24][25] Question: Long-term growth rate considerations - Management confirmed that the updated midpoint of guidance for 2025 will be used as the base for the new five-year range, consistent with past practices [35] Question: Texas capital plans and growth - Management stated that there will be no significant changes to capital plans due to the favorable bill enactment, but growth in Texas jurisdictions is expected to continue [38][39] Question: Texas rate case and consolidation benefits - Management noted that the consolidation of service areas will lead to efficiency and lower administrative costs, benefiting customers [46] Question: Opportunities in power load growth and data centers - Management highlighted significant inbound inquiries for data center and advanced manufacturing projects, emphasizing a strategic approach to enhance system resiliency [48][49] Question: Timeline for potential projects - Management indicated that some projects could manifest in the near term, while others may take longer depending on the required infrastructure [56]

Core Insights - ONE Gas, Inc. (OGS) reported second-quarter 2025 operating earnings per share (EPS) of 53 cents, matching the Zacks Consensus Estimate and reflecting a 10.4% increase from the previous year's earnings of 48 cents [1][10] - OGS recorded revenues of $423.7 million, exceeding the Zacks Consensus Estimate of $404 million by 4.9%, and representing a 19.7% increase from $354.1 million in the prior-year quarter [2][10] OGS' Revenues - Total natural gas volumes delivered were 67.6 billion cubic feet, a decrease of 0.9% year-over-year [3] - OGS served 2,302,000 customers, marking a 0.8% increase year-over-year [3] - Total operating expenses rose to $233.9 million, up 9.9% year-over-year, attributed to higher operations and maintenance expenses, depreciation and amortization, and general taxes [3] - Operating income increased by 3.7% year-over-year to $71.9 million [3] Financial Highlights - OGS incurred net interest expenses of $35.3 million, down 4.6% year-over-year [4] - As of June 30, 2025, OGS had cash and cash equivalents of $20.5 million, a decrease from $58 million as of December 31, 2024 [5] - Total long-term debt was $2.37 billion as of June 30, 2025, compared to $2.39 billion at the end of 2024 [5] - Cash provided by operating activities in the first half of 2025 was $448.8 million, up from $250.9 million in the same period last year [5] - Capital expenditures for the first six months of 2025 were $347.1 million, slightly higher than $342.4 million in the prior-year period [6] OGS' 2025 Guidance - OGS raised its 2025 financial guidance, now expecting net income in the range of $261-$267 million, up from the previous range of $254-$261 million [7] - Earnings per diluted share are now projected to be between $4.32 and $4.42, compared to the earlier range of $4.20 to $4.32 [7] - The Zacks Consensus Estimate for earnings is currently at $4.29, which is below the company's new guidance [7] - OGS continues to anticipate capital investments, including asset removal costs, of nearly $750 million [8] OGS' Zacks Rank - ONE Gas currently holds a Zacks Rank 2 (Buy) [9]

Core Insights - ONE Gas (OGS) reported revenue of $423.74 million for the quarter ended June 2025, marking a year-over-year increase of 19.7% and exceeding the Zacks Consensus Estimate of $404.11 million by 4.86% [1] - The earnings per share (EPS) for the same period was $0.53, compared to $0.48 a year ago, aligning with the consensus EPS estimate [1] - The stock has returned +0.8% over the past month, slightly underperforming the Zacks S&P 500 composite's +1% change, and currently holds a Zacks Rank 2 (Buy) [3] Revenue and Earnings Performance - Natural gas sales revenue was reported at $369.5 million, exceeding the two-analyst average estimate of $337.01 million, with a year-over-year change of +20.4% [4] - Transportation revenues reached $31 million, surpassing the two-analyst average estimate of $26.23 million, reflecting a year-over-year increase of +2.3% [4] Volume Metrics - Total natural gas sales volumes delivered were 18,900.00 MMcf, exceeding the three-analyst average estimate of 16,538.68 MMcf [4] - Total volumes delivered were 67,600.00 MMcf, compared to the average estimate of 70,277.42 MMcf [4] - Residential natural gas sales volumes were reported at 12,600.00 MMcf, above the two-analyst average estimate of 11,380.00 MMcf [4] - The average number of customers was reported at 2,302, slightly above the two-analyst average estimate of 2,300 [4]

Core Viewpoint - ONE Gas reported quarterly earnings of $0.53 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.48 per share a year ago [1] - The company posted revenues of $423.74 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 4.86% and up from $354.14 million year-over-year [2] Earnings Performance - The earnings surprise for the previous quarter was +7.03%, with actual earnings of $1.98 per share compared to an expected $1.85 [1] - Over the last four quarters, ONE Gas has surpassed consensus EPS estimates two times [1] Revenue Performance - The company has also topped consensus revenue estimates two times over the last four quarters [2] Stock Performance - ONE Gas shares have increased by approximately 5.9% since the beginning of the year, while the S&P 500 has gained 7.6% [3] Future Outlook - The company's earnings outlook is crucial for investors, including current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.54 on revenues of $383.09 million, and for the current fiscal year, it is $4.29 on revenues of $2.43 billion [7] Industry Context - The Utility - Gas Distribution industry is currently in the top 30% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) ONE Gas reported strong Q2 2025 results with increased net income and diluted EPS, raising full-year guidance and declaring a $0.67 quarterly dividend Q2 & YTD 2025 Financial Highlights | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $32.0 million | $27.2 million | $151.5 million | $126.6 million | | **Diluted EPS** | $0.53 | $0.48 | $2.51 | $2.23 | - The company increased its 2025 diluted earnings per share guidance from a range of **$4.20 - $4.32** to a new range of **$4.32 - $4.42**[2](index=2&type=chunk) - The board of directors declared a quarterly dividend of **$0.67 per share**, which is **$2.68** on an annualized basis[2](index=2&type=chunk) - In May 2025, the company executed a forward sale agreement for **2.5 million shares** of common stock at a net price of **$78.47 per share**, with settlement by December 31, 2026[2](index=2&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) Operating income increased in Q2 and YTD due to new rates, partially offset by higher operating expenses, while capital expenditures remained stable [Second Quarter 2025 Performance](index=2&type=section&id=Second%20Quarter%202025%20Performance) Q2 2025 operating income increased to $71.9 million, driven by new rates and sales volumes, despite higher expenses, with capital expenditures at $190.1 million Q2 2025 Operating Income Drivers (vs Q2 2024) | Driver | Impact (in millions) | | :--- | :--- | | **Increases** | | | New Rates | +$21.1 | | Higher Sales Volumes (net) | +$2.1 | | Residential Customer Growth | +$1.5 | | **Offsets** | | | Depreciation & Amortization | -$6.8 | | Employee-related Costs | -$5.7 | | Ad Valorem Taxes | -$5.0 | | Bad Debt Expense | -$1.6 | | Customer Refund | -$2.9 | - Capital expenditures and asset removal costs were **$190.1 million** in Q2 2025, slightly down from **$194.6 million** in Q2 2024[5](index=5&type=chunk) - Weather was **19% warmer** than normal but **45% colder** than Q2 2024, with the impact on operating income largely mitigated by regulatory weather normalization mechanisms[3](index=3&type=chunk) [Year-to-Date 2025 Performance](index=2&type=section&id=Year-to-Date%202025%20Performance) YTD 2025 operating income rose to $252.4 million, primarily from new rates, with capital expenditures totaling $367.8 million YTD 2025 Operating Income Drivers (vs YTD 2024) | Driver | Impact (in millions) | | :--- | :--- | | **Increases** | | | New Rates | +$73.0 | | Residential Customer Growth | +$3.9 | | **Offsets** | | | Depreciation & Amortization | -$11.9 | | Ad Valorem Taxes | -$9.7 | | Employee-related Costs | -$9.0 | | Bad Debt Expense | -$2.3 | | Insurance Expense | -$1.7 | | Customer Refund | -$2.9 | - Capital expenditures and asset removal costs for the six-month period were **$367.8 million**, compared to **$374.0 million** in the same period last year[10](index=10&type=chunk) - Weather for the six-month period was **3% colder** than normal and **18% colder** than the same period in 2024, with the financial impact largely tempered by regulatory mechanisms[8](index=8&type=chunk) [Regulatory Activities Update](index=3&type=section&id=Regulatory%20Activities%20Update) The company is actively engaged in regulatory proceedings, including rate case filings in Texas, approved increases in Kansas and Texas, and a settled increase in Oklahoma - **Texas:** Texas Gas Service filed a rate case in June 2025 for a **$41.1 million** revenue increase, with new rates expected in Q1 2026. Separately, Gas Reliability Infrastructure Program (GRIP) filings resulted in approved rate increases effective June 2025[11](index=11&type=chunk)[15](index=15&type=chunk) - **Kansas:** Kansas Gas Service received approval for a **$7.2 million** increase related to its Gas System Reliability Surcharge, effective August 2025[12](index=12&type=chunk) - **Oklahoma:** Oklahoma Natural Gas reached a settlement for its Performance-Based Rate Change application, resulting in a **$41.1 million** base rate revenue increase. Interim rates were implemented in June 2025, with final approval in July 2025[14](index=14&type=chunk) [2025 Financial Guidance](index=4&type=section&id=2025%20Financial%20Guidance) ONE Gas increased its 2025 financial guidance for net income and diluted EPS, while capital expenditure guidance remains at $750 million Updated 2025 Financial Guidance | Metric | Previous Guidance | Increased Guidance | | :--- | :--- | :--- | | **Net Income** | $254M - $261M | $261M - $267M | | **Diluted EPS** | $4.20 - $4.32 | $4.32 - $4.42 | | **EPS Midpoint** | $4.26 | $4.37 | - Capital expenditures, including asset removal costs, are still expected to be approximately **$750 million** in 2025[17](index=17&type=chunk) [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) An earnings conference call and webcast for Q2 2025 results will be held on August 6, 2025, with replay options available - **Event:** Earnings Conference Call and Webcast[18](index=18&type=chunk) - **Date and Time:** Wednesday, August 6, 2025, at 11 a.m. EDT (10 a.m. CDT)[18](index=18&type=chunk) - **Access:** Dial 833-470-1428 (passcode 734834) or log on to the company's investor relations website[18](index=18&type=chunk) - A replay will be available on the website for 30 days and by phone for seven days[19](index=19&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This report includes forward-looking statements subject to risks and uncertainties that may cause actual results to differ materially - The forward-looking statements are based on current expectations and are subject to known and unknown risks, uncertainties, and other factors[22](index=22&type=chunk)[24](index=24&type=chunk) - **Key risk factors** include, but are not limited to: * Ability to recover costs through regulated rates * Cyber-attacks and breaches of technology systems * Changes in regulation in Oklahoma, Kansas, and Texas * Competition from alternative energy sources * Adverse weather conditions and climate change * Availability of and access to capital markets[24](index=24&type=chunk)[27](index=27&type=chunk) [Appendix: Financial Statements and Supplementary Data](index=7&type=section&id=Appendix%3A%20Financial%20Statements%20and%20Supplementary%20Data) The appendix provides detailed unaudited financial statements, including income, balance, and cash flow statements, along with KGSS-I securitization and operational metrics [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) Total revenues increased to $423.7 million for Q2 and $1.36 billion YTD, with net income reaching $32.0 million for the quarter and $151.5 million YTD Income Statement Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $423,741 | $354,137 | $1,358,931 | $1,112,457 | | **Operating Income** | $71,855 | $69,280 | $252,354 | $215,140 | | **Net Income** | $32,033 | $27,243 | $151,452 | $126,560 | | **Diluted EPS** | $0.53 | $0.48 | $2.51 | $2.23 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $8.36 billion, total equity increased to $3.18 billion, and long-term debt remained stable Balance Sheet Summary (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $8,359,141 | $8,425,571 | | Net Property, Plant & Equipment | $6,872,091 | $6,645,873 | | **Total Liabilities** | $5,174,806 | $5,321,023 | | **Total Equity** | $3,184,335 | $3,104,548 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to $448.8 million, while investing activities used $348.5 million and financing activities used $136.1 million Cash Flow Summary - Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Cash from Operating Activities** | $448,809 | $250,926 | | **Cash used in Investing Activities** | ($348,511) | ($341,776) | | **Cash from (used in) Financing Activities** | ($136,114) | $83,929 | | **Change in Cash** | ($35,816) | ($6,921) | [KGSS-I Securitization](index=11&type=section&id=KGSS-I%20Securitization) KGSS-I contributed $13.2 million in Q2 and $24.8 million YTD revenue, with a negligible net income impact due to offsetting expenses Income Statement Impact of KGSS-I (in thousands) | Metric | Q2 2025 | YTD 2025 | | :--- | :--- | :--- | | **Operating Revenues** | $13,205 | $24,842 | | **Total Expenses** | ($13,282) | ($24,770) | | **Net Income** | $29 | $72 | [Information at a Glance](index=13&type=section&id=Information%20at%20a%20Glance) Key operational data shows total delivered gas volumes increased to 212.2 Bcf, average customers grew to 2.303 million, and weather was colder than normal Key Operating Metrics - Six Months Ended June 30 | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Total Volumes Delivered (Bcf)** | 212.2 | 202.1 | | **Average Number of Customers (thousands)** | 2,303 | 2,287 | - Weather for the six-month period was **3% colder** than normal, compared to **13% warmer** than normal in the same period of 2024[43](index=43&type=chunk)

Core Insights - ONE Gas, Inc. reported strong operational performance in the second quarter of 2025, leading to increased financial guidance for the year [2][15] - The company declared a quarterly dividend of $0.67 per share, reflecting a commitment to returning value to shareholders [6][15] Financial Performance - For Q2 2025, ONE Gas reported operating income of $71.9 million, up from $69.3 million in Q2 2024, driven by regulatory mechanisms that mitigated the impact of weather [3][38] - Net income for Q2 2025 was $32.0 million, or $0.53 per diluted share, compared to $27.2 million, or $0.48 per diluted share, in Q2 2024 [6][38] - Year-to-date net income for 2025 reached $151.5 million, or $2.51 per diluted share, compared to $126.6 million, or $2.23 per diluted share, in the same period last year [6][38] Capital Expenditures - Capital expenditures and asset removal costs for Q2 2025 were $190.1 million, slightly lower than $194.6 million in the same period last year [5][38] - Year-to-date capital expenditures totaled $367.8 million, compared to $374.0 million in the first half of 2024 [9][38] Regulatory Activities - Texas Gas Service filed a rate case in June 2025, requesting a $41.1 million revenue increase, with new rates expected to take effect in Q1 2026 [10] - Oklahoma Natural Gas reached a settlement for a $41.1 million base rate revenue increase, effective from June 2025 [12][14] Financial Guidance - The company raised its 2025 financial guidance, expecting net income in the range of $261 million to $267 million, up from the previous range of $254 million to $261 million [15] - Earnings per diluted share guidance was increased to approximately $4.32 to $4.42, from a prior range of $4.20 to $4.32 [15] Customer Metrics - ONE Gas serves over 2.3 million customers across Kansas, Oklahoma, and Texas, with a slight increase in customer numbers compared to the previous year [19][38] - The average number of residential customers was 2,124 thousand in Q2 2025, compared to 2,106 thousand in Q2 2024 [38]

Core Viewpoint - The Zacks Utilities sector is expected to see a 0.7% increase in earnings for Q2 2025, driven by higher revenues of 7.5%, supported by new rates, cost-saving initiatives, and customer growth [1] Group 1: Earnings Expectations - MDU Resources Group is anticipated to benefit from customer growth in electric and natural gas sectors, with an Earnings ESP of +20% and a Zacks Rank 2, despite a projected earnings decrease of 59.4% year-over-year [7][8] - ONE Gas is expected to report earnings of $1.75 per share, reflecting a 37.8% increase from the previous year, supported by new rates and infrastructure investments, with an Earnings ESP of +3.22% and a Zacks Rank 2 [9][10] - Sempra Energy's earnings are projected at 83 cents per share, a decrease of 6.7% from the prior year, benefiting from renewable energy investments and data center demand, with an Earnings ESP of +0.60% and a Zacks Rank 2 [11] - Spire is expected to show an improvement in fiscal third-quarter earnings, with a projected loss of 9 cents per share, indicating a 35.7% improvement year-over-year, supported by advanced meter installations and customer growth, with an Earnings ESP of +14.81% and a Zacks Rank 3 [12][13] Group 2: Factors Influencing Performance - Utility providers are benefiting from higher electricity rates, acquisitions, cost reductions, and energy-efficiency programs, which enhance their overall performance [3] - The installation of smart meters is improving operational efficiency and customer engagement, leading to reduced costs and increased revenue [4] - The growing demand from data centers, particularly those supporting artificial intelligence, is significantly increasing electricity consumption, positively impacting utility revenues [5] - Economic improvements in service territories are creating fresh demand for utility services, further boosting revenues [4][5][6]

Group 1 - ONE Gas (OGS) has a strong history of beating earnings estimates, particularly in the last two quarters, indicating potential for future earnings beats [1][2] - The average surprise for ONE Gas over the past two quarters is 3.89%, with a recent quarter showing a surprise of 7.03% and the previous quarter at 0.75% [2] - The company's Earnings ESP (Expected Surprise Prediction) is currently +4.76%, suggesting analysts are optimistic about its near-term earnings potential [8] Group 2 - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) indicates a high likelihood of another earnings beat for ONE Gas [8] - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6] - The next earnings report for ONE Gas is anticipated to be released on August 5, 2025 [8]