ONE Gas(OGS)2020-02-20 18:24Financial Data and Key Metrics Changes - Net income for Q4 2019 was 0.96 per diluted share, compared to 0.84 per diluted share for the same period last year, reflecting a year-over-year increase [7] - For the full year 2019, net income was 3.51 per diluted share, up from 3.25 per diluted share in 2018 [9] - Operating costs for Q4 2019 were 123.8 million in the same period last year, primarily due to employee-related expenses and bad debt expenses [8] Business Line Data and Key Metrics Changes - Net margin increased by 45.7 million due to new rates, residential customer growth, and higher sales volumes in Texas [9] Market Data and Key Metrics Changes - The average rate base at year-end was 30 million [13] Company Strategy and Development Direction - The company plans to focus on maintaining safety and reliability, extending service to new areas, and investing in technology to improve efficiency and customer experience [15][16] - The forecasted average annual dividend increase is expected to be 6% to 8% between 2019 and 2024, with a targeted payout ratio of 55% to 65% of net income [14] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its business strategy, emphasizing a focus on safety, reliability, and reducing emissions [26][28] - The company anticipates net financing needs of 900 million over the next five years, with a forecasted EPS growth rate of 5% to 7% [17][18] Other Important Information - Capital expenditures for 2019 totaled 465.1 million, with a focus on system improvements and safety [13] - The company completed its five-year accelerated cast iron replacement program, which is part of its strategy to reduce methane emissions [24] Q&A Session Summary Question: What was the last rate case in Texas? - The last rate case in Central Texas was approximately in 2015 [31] Question: What percentage increase does the 15 million revenue increase request represent? - The detailed percentage data was not available during the call, but it was noted to be about a 9% increase as filed [45] Question: Can you characterize your relationship with the Railroad Commission? - The company has a constructive relationship with both City Councils and the Railroad Commission [34] Question: What are the customer growth profiles among the three states? - Texas has the highest growth rates, particularly in Austin and El Paso, while Oklahoma is slightly above average and Kansas is relatively flat [36] Question: What initiatives are in place to improve earned ROE? - The expected ROE for 2020 is 8.4%, with initiatives focused on operational efficiency and regulatory processes [37][38] Question: When will the next GSRS filing be in Kansas? - The next GSRS filing is expected in August of the current year [42] Question: Will asset removal costs change significantly? - No significant change in asset removal costs is expected, though they may decrease slightly [48]