ONE Gas (NYSE:OGS) reported fourth-quarter 2019 earnings of 96 cents per share, which surpassed the Zacks Consensus Estimate of 95 cents by 1.1%.
The figure also rose 14.3% from the year-ago level driven by new rates, and residential customer growth in Oklahoma and Texas.
Total Revenues
The company recorded total revenues of $453 million in the fourth quarter, which missed the Zacks Consensus Estimate of $468 million by 3.3%. Revenues also declined 2.6% from the year-ago level.
Quarterly Highlights
Total operating expenses in the reported quarter increased 9.2% from the year-ago figure to $179.92 million.
Operating income in the reported quarter increased 1.2% year over year to $81.9 million.
The company incurred interest expenses of $15.7 million, up 7.5% from the prior-year figure. The increase in expenses was due to refinancing of its senior notes.
Financial Highlights
As of Dec 31, 2019, ONE Gas had cash and cash equivalents of $17.9 million compared with $21.3 million in the corresponding period of 2018.
Long-term debt (excluding current maturities) was $1,286.1 million as of Dec 31, 2019, up from the comparable year-ago level of $1,285.5 million.
The company’s cash flow from operating activities in 2019 was $310.4 million compared with $467.7 million a year ago.
Guidance
ONE Gas has maintained its 2020 guidance, declared on Jan 21, 2020, for net income in the range of $186-$198 million. Its earnings per share guidance is projected in the range of $3.44-$3.68. The midpoint of management’s 2020 EPS guidance is $3.56, lower than the current Zacks Consensus Estimate of $3.62 for the period.
The company’s capital expenditures guidance, including asset removal costs, is estimated to be $475 million for 2020. Out of this, 70% will be directed toward system integrity and replacement projects.
Zacks Rank
Currently, ONE Gas carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
National Fuel Gas Company (NYSE:NFG) posted first-quarter fiscal 2020 operating earnings of $1.01 per share, beating the Zacks Consensus Estimate of 95 cents by 6.3%.
Atmos Energy Corporation (NYSE:ATO) posted first-quarter fiscal 2020 earnings of $1.47 per share, which lagged the Zacks Consensus Estimate of $1.49 by 1.3%.
Plains All American Pipeline, L.P. (NYSE:PAA) reported fourth-quarter 2019 adjusted earnings of 63 cents per unit, beating the Zacks Consensus Estimate of 49 cents by 28.6%.
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