ONE Gas(OGS)2023-02-23 20:59Financial Data and Key Metrics Changes - Net income for Q4 2022 was 1.23 per diluted share, compared to 1.12 per diluted share in Q4 2021, reflecting a year-over-year increase [19] - For the full year, net income was 4.08 per diluted share, versus 3.85 per diluted share in 2021, indicating a solid growth in profitability [20] - Operating income increased by approximately 13% or 58.7 million from new rates and 24.4 million higher than 2021, primarily due to increases in outside service costs and employee labor and benefits [9] - Capital expenditures for Q4 were 656.5 million for the year, compared to 4.69 billion, with 42% in Oklahoma, 27% in Kansas, and 31% in Texas [29] - New customer connections in Texas grew roughly 3%, while Oklahoma saw a 17% increase, and Kansas jumped almost 22% compared to the prior year [24] Company Strategy and Development Direction - The company is focused on a disciplined phased approach to growth, managing current opportunities while positioning for long-term system expansion [40] - The recent approval of the West North Texas rate case is seen as a constructive outcome, recognizing the need for ongoing investments to enhance system integrity [26] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the company in facing challenges such as inflation and supply chain impacts, maintaining a focus on safety, customer service, and organic growth [44] - The company remains optimistic about future growth opportunities, supported by economic development in its service territories and a favorable energy landscape [51] Other Important Information - The company ended the year with 1 billion commercial paper program and no borrowings under its credit facility [10] - A dividend of $0.65 per share was declared in January, marking a 5% increase from the previous quarter [30] Q&A Session Summary Question: Can you quantify the improvement for working capital and short-term debt balance anticipated for year-end 2023? - Management indicated that lower gas costs would positively impact cash flow and working capital needs, but emphasized that gas prices are just one factor among many [50][57] Question: Are there similar projects in the pipeline that could manifest over the next 12 to 18 months? - Management confirmed ongoing success in securing new projects, with continued building activity in service territories, indicating a positive outlook for future growth [51][54] Question: How should we think about the backlog and its fulfillment timeline given the change in customer growth rates? - Management clarified that the backlog is growing, with ongoing demand for new connections, and emphasized the importance of separating short-term from long-term projects [54][74]