ONE Gas, Inc. (OGS) AI Stock Analysis

ONE Gas, Inc. operates as a regulated natural gas distribution utility company across the United States through three primary divisions: Oklahoma Natural Gas, Kansas Gas Service, and Texas Gas Service. These divisions deliver natural gas distribution services to approximately 2.2 million customers across the residential, commercial, and transportation sectors. The company's infrastructure includes roughly 41,600 miles of distribution mains and 2,400 miles of transmission pipelines, supported by 51.4 billion cubic feet of natural gas storage capacity. Founded in 1906 and headquartered in Tulsa, Oklahoma, ONE Gas focuses on infrastructure upgrades, operational efficiency, and regulatory compliance.

ONE Gas grew revenue from $1.81B in FY2021 to $2.43B in FY2025, reflecting a 5-year revenue CAGR of 9.7%. Annual revenue fluctuated over this span, rising 42.5% in FY2022 before contracting 8.0% in FY2023 and 12.2% in FY2024. In FY2025, revenue rebounded 16.5% with gross margin improving to 58.8% and operating margin reaching 18.8%. Net income reached $264.2M in FY2025, yielding an EPS of $4.43. For the trailing twelve months ended June 30, 2026, revenue stood at $2.31B with an operating margin of 19.9% and EPS of $4.65. In the quarter ended June 30, 2026, revenue fell 2.9% year-over-year, while quarterly earnings grew 39.6%.

As of June 30, 2026, ONE Gas held $7.9M in cash and short-term investments alongside total debt of $3.39B, resulting in net debt of $3.39B. Shareholders' equity was $3.54B, with a debt-to-equity ratio of 0.96 and a current ratio of 0.48. In FY2025, the company generated operating cash flow of $578.8M but posted free cash flow of -$128.4M after funding $707.2M in capital expenditures. Financial activities in FY2025 included $212.2M raised from share issuance and $160.7M paid in dividends, with its share count increasing 17.3% over five years.

At a last close of $75.60, ONE Gas has a market capitalization of $4.75B and an enterprise value of $7.93B. The stock trades at a trailing P/E of 16.3x and an EV/EBITDA of 10.0x, both below the median of its US-listed Utilities peers at 20.6x and 12.1x, respectively. Its forward P/E of 17.4x compares to the peer median of 17.2x. Over the past year, the stock fell 3.7%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, the stock returned 32.7% versus 83.0% for the index.

ONE Gas pays a quarterly dividend with an annualized forward payout of $2.72 per share, offering a dividend yield of 3.60%. The company has paid dividends for 13 consecutive years, achieving an annualized 5-year dividend growth rate of 4.4%. Its payout ratio stands at 55.9%, and its last ex-dividend date was August 17, 2026.

Wall Street coverage consists of 5 Strong Buy, 1 Buy, and 4 Hold ratings. The mean price target is $86.28, representing a 14.1% upside over the last close of $75.60. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $4.91 on revenue of $2.48B. For the following fiscal year, 10 analysts expect EPS of $5.03 and revenue of $2.58B. ONE Gas beat EPS estimates in 3 of the last 4 quarters, with its next earnings release scheduled for November 2, 2026.

This page is an AI-written research summary of ONE Gas, Inc. (OGS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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