ONE Gas, Inc. (NYSE:) recorded second-quarter 2019 operating earnings of 46 cents per share, beating the Zacks Consensus Estimate of 41 cents by 12.2%.
Moreover, the reported earnings improved 17.9% year over year driven by new rates, and marginally lower operation and maintenance expenses.
Total Revenues
The company reported total revenues of $290.6 million in the second quarter, lagging the Zacks Consensus Estimate of $294 million by nearly 1.15% and declining from the prior-year figure of $292.5 million by 0.7%.
ONE Gas, Inc. Price, Consensus and EPS Surprise
ONE Gas, Inc. price-consensus-eps-surprise-chart | ONE Gas, Inc. Quote
Quarterly Highlights
Total operating expenses in the reported quarter increased 2.4% from the year-ago period to $161.1 million.
Operating income in the reported quarter increased 14.1% year over year to $46.9 million.
The company incurred interest expenses of $15.4 million, increasing 28.3% from the year-ago period.
Financial Highlights
On Jun 30, 2019, ONE Gas had cash and cash equivalents of $11.1 million compared with $21.3 million at 2018-end.
Long-term debt (excluding current maturities) was $1,285.8 million as of Jun 30, 2019, increasing marginally from the Dec 31, 2018 level of $1,285.5 million.
The company’s cash flow from operating activities in the first half of 2019 was $241.1 million compared with $399.9 million in the prior-year period.
Guidance
ONE Gas upwardly revised its guidance for 2019 net income to the range of $180-$190 million from $174-$190 million. Earnings per share guidance was revised upward to the band of $3.39-$3.57 from $3.27-$3.57 per share. The midpoint of management’s 2019 EPS guidance is $3.48, higher than the current Zacks Consensus Estimate of $3.45 for the period.
The company reiterated its 2019 capital expenditure view of $450 million. Out of the projected expenditure, 70% is directed toward system integrity and replacement projects.
Upcoming Releases
MDU Resources Group Inc. (NYSE:) is expected to release second-quarter 2019 results on Jul 31. The Zacks Consensus Estimate for the quarter is pegged at 25 cents.
National Fuel Gas Company (NYSE:) is expected to release third-quarter fiscal 2019 results on Aug 2. The Zacks Consensus Estimate for the quarter to be reported is pegged at 64 cents.
Atmos Energy Corporation (NYSE:) is expected to release third-quarter fiscal 2019 results on Aug 7. The Zacks Consensus Estimate for the quarter is pegged at 69 cents.
Zacks Rank
ONE Gas currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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