# ONE Gas, Inc. (OGS)

Informational only - not investment advice.

CIK: 0001587732
SIC: 4924 Natural Gas Distribution
SIC breadcrumb: [Transportation, Communications, Electric, Gas, And Sanitary Services](/division/E/) > [Electric, Gas, And Sanitary Services](/major-group/49/) > [SIC 4924 Natural Gas Distribution](/industry/4924/)
Latest 10-K filed: 2026-02-19
SEC page: https://www.sec.gov/edgar/browse/?CIK=1587732
Filing source: https://www.sec.gov/Archives/edgar/data/1587732/000158773226000009/ogs-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-19 · accession 0001587732-26-000009 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001587732.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 2,427,428,000 USD | 2025 | verified |
| Net income | 264,224,000 USD | 2025 | verified |
| Assets | 8,853,084,000 USD | 2025 | verified |
| Free cash flow | -128,393,000 USD | 2025 | computed |
| Net margin | 10.88% | 2025 | computed |
| Operating margin | 18.85% | 2025 | computed |
| Revenue YoY | +16.50% | 2025 | computed |
| ROE | 7.68% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | OGS | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 10.9% | 11.0% | 38 | 9 |
| Operating margin | 18.8% | 21.8% | 12 | 9 |
| Revenue growth | 16.5% | 13.4% | 62 | 9 |
| ROE | 7.7% | 8.0% | 25 | 9 |
| ROA | 3.0% | 3.0% | 50 | 9 |
| Liabilities / equity | 1.57 | 2.17 | 25 | 9 |
| Current ratio | 0.60 | 0.72 | 38 | 9 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 4924 Natural Gas Distribution, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 2427428000 | USD | 2025 | 2026-02-19 |
| Net income | 264224000 | USD | 2025 | 2026-02-19 |
| Assets | 8853084000 | USD | 2025 | 2026-02-19 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-19. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001587732.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  | 1,633,731,000 | 1,652,730,000 | 1,530,268,000 | 1,808,597,000 | 2,578,005,000 | 2,371,990,000 | 2,083,558,000 | 2,427,428,000 |
| Net income | 140,095,000 | 162,995,000 | 172,234,000 | 186,749,000 | 196,412,000 | 206,434,000 | 221,742,000 | 231,232,000 | 222,850,000 | 264,224,000 |
| Operating income | 288,947,000 | 316,728,000 | 288,429,000 | 295,258,000 | 303,516,000 | 310,258,000 | 349,957,000 | 377,590,000 | 398,899,000 | 457,467,000 |
| Diluted EPS | 2.65 | 3.08 | 3.25 | 3.51 | 3.68 | 3.85 | 4.08 | 4.14 | 3.91 | 4.37 |
| Operating cash flow | 290,589,000 | 253,800,000 | 467,694,000 | 310,345,000 | 364,500,000 | -1,535,657,000 | 1,570,842,000 | 939,532,000 | 368,411,000 | 578,833,000 |
| Capital expenditures | 309,071,000 | 356,361,000 | 394,450,000 | 417,322,000 | 471,345,000 | 495,246,000 | 609,486,000 | 666,634,000 | 703,165,000 | 707,226,000 |
| Dividends paid | 73,209,000 | 87,951,000 | 96,594,000 | 105,424,000 | 114,372,000 | 123,912,000 | 133,954,000 | 144,094,000 | 149,456,000 | 160,705,000 |
| Assets | 4,942,791,000 | 5,206,878,000 | 5,468,642,000 | 5,708,300,000 | 6,028,712,000 | 8,402,120,000 | 7,776,396,000 | 7,770,994,000 | 8,425,571,000 | 8,853,084,000 |
| Stockholders' equity | 1,888,280,000 | 1,960,209,000 | 2,042,656,000 | 2,129,390,000 | 2,233,311,000 | 2,349,532,000 | 2,584,426,000 | 2,765,877,000 | 3,104,548,000 | 3,440,123,000 |
| Cash and cash equivalents | 14,663,000 | 14,413,000 | 21,323,000 | 17,853,000 | 7,993,000 | 8,852,000 | 9,681,000 | 18,835,000 | 57,995,000 | 10,620,000 |
| Free cash flow | -18,482,000 | -102,561,000 | 73,244,000 | -106,977,000 | -106,845,000 | -2,030,903,000 | 961,356,000 | 272,898,000 | -334,754,000 | -128,393,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  | 10.54% | 11.30% | 12.84% | 11.41% | 8.60% | 9.75% | 10.70% | 10.88% |
| Operating margin |  |  | 17.65% | 17.86% | 19.83% | 17.15% | 13.57% | 15.92% | 19.15% | 18.85% |
| Return on equity | 7.42% | 8.32% | 8.43% | 8.77% | 8.79% | 8.79% | 8.58% | 8.36% | 7.18% | 7.68% |
| Return on assets | 2.83% | 3.13% | 3.15% | 3.27% | 3.26% | 2.46% | 2.85% | 2.98% | 2.64% | 2.98% |
| Liabilities / equity | 1.62 | 1.66 | 1.68 | 1.68 | 1.70 | 2.58 | 2.01 | 1.81 | 1.71 | 1.57 |
| Current ratio | 1.28 | 0.87 | 0.78 | 0.58 | 0.68 | 2.27 | 1.02 | 0.52 | 0.64 | 0.60 |

## As-reported value updates

3 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/OGS/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001587732.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q1 | 2022-03-31 |  |  | 1.83 | reported discrete quarter |
| 2022-Q2 | 2022-06-30 |  |  | 0.59 | reported discrete quarter |
| 2022-Q3 | 2022-06-30 |  | 32,075,000 |  | reported discrete quarter |
| 2022-Q3 | 2022-09-30 | 359,363,000 |  | 0.44 | reported discrete quarter |
| 2022-Q4 | 2022-12-31 | 818,208,000 | 67,032,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2023-Q1 | 2023-03-31 |  | 102,621,000 |  | reported discrete quarter |
| 2023-Q1 | 2023-06-30 | 398,114,000 |  | 0.58 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | 32,689,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 335,816,000 |  | 0.45 | reported discrete quarter |
| 2024-Q1 | 2024-03-31 |  | 99,317,000 |  | reported discrete quarter |
| 2024-Q1 | 2024-06-30 | 354,137,000 |  | 0.48 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 |  | 27,243,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 340,398,000 |  | 0.34 | reported discrete quarter |
| 2025-Q1 | 2025-03-31 | 935,190,000 | 119,419,000 | 1.98 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 |  | 119,419,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 423,741,000 |  | 0.53 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 |  | 32,033,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 379,125,000 |  | 0.44 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 689,372,000 | 86,306,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 831,711,000 | 128,673,000 | 2.04 | reported discrete quarter |
| 2026-Q2 | 2026-03-31 |  | 128,673,000 |  | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 411,639,000 |  | 0.74 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from OGS's latest 10-K: [/company/OGS/business/](/company/OGS/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from OGS's latest 10-K: [/company/OGS/risk-factors/](/company/OGS/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1587732/000158773226000035/ogs-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-05
Report date: 2026-06-30

ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with our unaudited consolidated financial statements and the Notes to Consolidated Financial Statements in this Quarterly Report, as well as our Annual Report. We have disclosed non-GAAP financial measures of adjusted net income and adjusted net income per share. Management and the Board of Directors use these non-GAAP financial measures, in addition to GAAP financial measures, to evaluate financial performance, specifically impacts from certain regulatory mechanisms designed to mitigate regulatory lag, understand and compare operating results across accounting periods, and for planning and forecasting. These non-GAAP financial measures are additional information and should not be considered as alternatives to, or more meaningful than, the related GAAP financial measures or comparable to similar measures used by other companies.

RECENT DEVELOPMENTS

Dividend - In August 2026, we declared a dividend of $0.68 per share ($2.72 per share on an annualized basis) for shareholders of record as of August 17, 2026, payable on August 31, 2026.

REGULATORY ACTIVITIES

Oklahoma - On February 26, 2026, Oklahoma Natural Gas filed its required PBRC application for the year ended December 31, 2025. The filed request included a $28.7 million base rate revenue increase, $2.6 million energy efficiency incentive, and $14.4 million of estimated EDIT to be credited to customers in 2027. At the hearing on June 11, 2026, the administrative law judge recommended approval of the application as filed. Subsequent to the hearing, exceptions to the administrative law judge’s oral ruling were filed at the OCC as well as an appeal to the Oklahoma Supreme Court. Interim rates subject to refund were implemented on June 26, 2026, in compliance with the PBRC tariff.

Kansas - In July 2026, Kansas Gas Service submitted an application to the KCC requesting an increase of approximately $14.3 million related to its GSRS to be effective October 2026. The filing includes expanded infrastructure investments as defined by Kansas House Bill 2435.

Texas - In March 2026, Texas Gas Service made a GRIP filing for all customers requesting a $36.9 million increase to be effective in July 2026. In June 2026, the RRC approved an increase of $36.9 million, and new rates became effective in July 2026.

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FINANCIAL RESULTS AND OPERATING INFORMATION

We operate in one reportable business segment: regulated public utilities that deliver natural gas to residential, commercial, and transportation customers. Our accounting policies are the same as described in Note 1 of the Notes to Consolidated Financial Statements in our Annual Report. We evaluate our financial performance principally on net income.

Selected Financial Results - For the three months ended June 30, 2026, net income was $46.8 million, or $0.74 per diluted share, compared with $32.0 million, or $0.53 per diluted share, in the same period last year. Adjusted net income was $52.1 million, or $0.82 adjusted net income per diluted share, for the three months ended June 30, 2026 compared with adjusted net income of $32.7 million, or $0.54 adjusted net income per diluted share, in the same period last year. For the six months ended June 30, 2026, net income was $175.5 million, or $2.78 per diluted share, compared with $151.5 million, or $2.51 per diluted share, in the same period last year. Adjusted net income was $185.5 million, or $2.94 adjusted net income per diluted share, for the six months ended June 30, 2026 compared with adjusted net income of $152.8 million, or $2.53 adjusted net income per diluted share, in the same period last year. See the “Non-GAAP Financial Measures” section for a reconciliation of the Company’s GAAP net income and GAAP EPS to adjusted net income and adjusted net income per share.

The following table sets forth certain selected financial results for our operations for the periods indicated:

[[GREPCENT_TABLE]]
[["","Three Months Ended","Six Months Ended","Three Months","Six Months"],["","June 30,","June 30,","2026 vs. 2025","2026 vs. 2025"],["Financial Results","2026","2025","2026","2025","Increase (Decrease)","Increase (Decrease)"],["","(Millions of dollars, except percentages)"],["Natural gas sales","$","357.8","","$","369.5","","$","1,127.7","","$","1,239.9","","$","(11.7)","","(3)","%","$","(112.2)","","(9)","%"],["Transportation revenues","31.8","","31.0","","71.9","","74.8","","0.8","","3","%","(2.9)","","(4)","%"],["Securitization customer charges","10.9","","13.2","","21.9","","24.8","","(2.3)","","(17)","%","(2.9)","","(12)","%"],["Other revenues","11.1","","10.0","","21.8","","19.5","","1.1","","11","%","2.3","","12","%"],["Total revenues","$","411.6","","$","423.7","","$","1,243.3","","$","1,359.0","","$","(12.1)","","(3)","%","$","(115.7)","","(9)","%"],["Cost of natural gas","90.4","","117.9","","483.9","","630.4","","(27.5)","","(23)","%","(146.5)","","(23)","%"],["Operating costs","162.4","","154.6","334.2","","315.2","","7.8","","5","%","19.0","","6","%"],["Depreciation and amortization","76.2","","79.3","","153.0","","161.0","","(3.1)","","(4)","%","(8.0)","","(5)","%"],["Operating income","$","82.6","","$","71.9","","$","272.2","","$","252.4","","$","10.7","","15","%","$","19.8","","8","%"],["Capital expenditures and asset removal costs","$","188.3","","$","190.1","","$","357.9","","$","367.8","","$","(1.8)","","(1)","%","$","(9.9)","","(3)","%"]]
[[/GREPCENT_TABLE]]

Natural gas sales to customers represent revenue from contracts with customers through implied contracts established by our tariffs and rates approved by regulatory authorities, as well as revenues from regulatory mechanisms related to natural gas sales. Natural gas sales also include recovery of the cost of natural gas.

Our natural gas sales include fixed and variable charges related to the delivery of natural gas and gas costs that are passed through to our customers in accordance with our cost of natural gas regulatory mechanisms. Fixed charges reflect the portion of our natural gas sales attributable to the monthly fixed customer charge component of our rates, which does not fluctuate based on customer usage in each period. Variable charges reflect the portion of our natural gas sales that fluctuate with the volumes delivered and billed and the effects of weather normalization.

Transportation revenues represent revenue from contracts with customers through implied contracts established by our tariffs and rates approved by regulatory authorities, as well as tariff-based negotiated contracts.

Securitization customer charges represent revenue from contracts with customers through implied contracts established by the financing order approved by the KCC, related to the securitization of extraordinary costs incurred during Winter Storm Uri in the state of Kansas. See Note 14 of the Notes to Consolidated Financial Statements in this Quarterly Report for additional discussion of the securitization transaction in Kansas.

Other revenues include primarily miscellaneous service charges, which represent implied contracts with customers established by our tariffs and rates approved by regulatory authorities and other revenues from regulatory mechanisms.

Cost of natural gas includes commodity purchases, fuel, storage, transportation, hedging costs, and settlement proceeds for natural gas price volatility mitigation programs approved by our regulators and other gas purchase costs recovered through our cost of natural gas regulatory mechanisms. Cost of natural gas does not include an allocation of general operating costs or

27

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depreciation and amortization. These regulatory mechanisms provide a method of recovering natural gas costs on an ongoing basis without a profit. Therefore, although our revenues fluctuate with the cost of natural gas that we pass through to our customers, operating income is not affected by fluctuations in the cost of natural gas.

Operating income increased $10.7 million for the three months ended June 30, 2026, compared with the same period last year, due primarily to the following:

•an increase of $16.4 million in revenue from new rates;

•an increase of $1.4 million in residential sales due primarily to net customer growth in Oklahoma and Texas; and

•an increase of $1.3 million in line extension revenue in Oklahoma.

These increases were partially offset by:

•an increase of $7.4 million in employee-related costs;

•an increase of $1.1 million in outside services; and

•an increase of $1.1 million in fleet expense.

Operating income increased $19.8 million for the six months ended June 30, 2026, compared with the same period last year, due primarily to the following:

•an increase of $43.7 million from new rates;

•an increase of $3.2 million in residential sales due primarily to net customer growth in Oklahoma and Texas; and

•an increase of $1.8 million from released transportation capacity to other shippers in Kansas.

These increases were partially offset by:

•an increase of $13.2 million in employee-related costs;

•an increase of $3.4 million in outside services;

•an increase of $1.3 million in fleet expense; and

•a decrease of $10.6 million in revenue due to lower sales and transport volumes, net of the impact of weather normalization mechanisms.

Weather across our service territories was 28 percent warmer than the prior year for the three months ended June 30, 2026 and 25 percent warmer than the prior year for the six months ended June 30, 2026. The impact on operating income was mitigated by our weather normalization mechanisms.

Other Factors Affecting Net Income - Other factors that affected net income for the three months ended June 30, 2026, compared to the same period last year, include an increase of $2.6 million in other income (expense), net due primarily to a credit of $2.4 million due to the change in federal tax regulation for securitization, a $1.7 million increase in the market value of investments associated with our nonqualified deferred compensation plan, partially offset by a $1.3 million decrease in net periodic benefit credit other than service costs.

Other income (expense), net for the six months ended June 30, 2026, compared to the same period last year, increased $33 thousand due primarily to a credit of $2.4 million due to the change in federal tax regulation for securitization, a $0.8 million increase in the market value of investments associated with our nonqualified deferred compensation plan, partially offset by a $2.8 million decrease in net periodic benefit credit other than service costs.

Additionally, net income for the three and six months ended June 30, 2026, compared with the same periods last year, includes decreases in interest expense, net of $4.2 million and $7.5 million, respectively, due primarily to a lower weighted-average interest rate on commercial paper borrowings and the implementation of Texas House Bill 4384.

EDIT - Income tax expense reflects credits for the amortization of the regulatory liability associated with EDIT that were returned to customers of $3.3 million and $2.1 million for the three months ended June 30, 2026 and 2025, respectively, and credits of $12.8 million and $10.2 million for the six months ended June 30, 2026 and 2025, respectively.

Capital Expenditures and Asset Removal Costs - Our capital expenditures program includes expenditures for pipeline integrity, extending service to new areas, reinforcing and increasing system capabilities, pipeline replacements, automated meter reading, government-mandated pipeline relocations, fleet, facilities, IT assets, and cybersecurity. It is our practice to maintain and upgrade our infrastructure, facilities, and systems to ensure safe, reliable, and efficient operations. Asset removal

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[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1587732/000158773226000009/ogs-20251231.htm
Complete FY 2025 MD&A: /company/OGS/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-19
Report date: 2025-12-31

ITEM 7.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with our audited consolidated financial statements and the Notes to Consolidated Financial Statements in this Annual Report. We have disclosed non-GAAP financial measures of adjusted net income and adjusted net income per share. Management and the Board of Directors use these non-GAAP financial measures, in addition to GAAP financial measures, to evaluate financial performance, specifically impacts from certain regulatory mechanisms designed to mitigate regulatory lag, understand and compare operating results across accounting periods, and for planning and forecasting. These non-GAAP financial measures are additional information and should not be considered as alternatives to, or more meaningful than, the related GAAP financial measures or comparable to similar measures used by other companies.

EXECUTIVE SUMMARY

We are a 100-percent regulated natural gas distribution company. As such, our regulators determine the rates we are allowed to charge for our service based on the revenue requirements needed to achieve our authorized rates of return. We earn revenues from the delivery of natural gas, but do not earn a profit on the natural gas that we deliver, as those costs are passed through to our customers at cost. The primary components of our revenue requirements are the amount of capital invested in our business, which is also known as rate base, our allowed rate of return on our capital investments, and our recoverable operating expenses, including depreciation, interest expense, and income taxes. The variable component of our rates is dependent on the consumption of natural gas, which is impacted primarily by the weather and, to a lesser extent, economic activity. While we have WNA mechanisms that adjust customers’ bills when actual HDDs differ from normalized HDDs, these mechanisms are in place for only a portion of the year, except in Kansas, and do not offset all fluctuations in usage resulting from weather variability. Accordingly, the weather can have either a positive or negative impact on our financial performance.

Our financial performance is contingent on a number of factors, including: (1) our regulatory construct, including the rates we are allowed to charge for our service, and the authorized rates of return on our investments in rate base; (2) the consumption of natural gas, which impacts the amount of natural gas revenues derived from the variable component of our rates; (3) customer growth; (4) our operating performance; and (5) the perceived value of natural gas relative to other energy sources, particularly electricity, which influences our customers’ choice of natural gas to provide a portion of their energy needs.

We are subject to regulatory requirements for pipeline integrity, pipeline and cyber security, and environmental compliance. These requirements impact our operating expenses and the level of capital expenditures required for compliance. Historically, our regulators have allowed recovery of these expenditures. However, because integrity and environmental regulations are frequently changing, our capital and operating expenditures to comply are changing as well. Although we believe our regulators will continue to allow recovery of such expenditures in the future, we will continue to make these expenditures with no assurance about if, or over what period, we will be permitted to recover them.

RECENT DEVELOPMENTS

Infrastructure Initiative - On December 18, 2025, we announced an infrastructure initiative to support economic growth and enhance energy reliability in southeast Oklahoma. Once operational, the new pipeline will deliver over 100 Bcf of natural gas annually in southeast Oklahoma, including servicing Western Farmers Electric Cooperative’s natural gas-fueled generation at its Hugo plant. The project includes a 43-mile, natural gas pipeline connecting to the Bennington Natural Gas Hub. We will invest approximately $120 million and Oklahoma Natural Gas will install and operate the pipeline, which is expected to be completed by the third quarter of 2028.

Credit Facility - In October 2025, we amended and restated the ONE Gas Credit Agreement. During this process we increased the capacity to $1.5 billion from $1.35 billion with the addition of one new lender and reduction of three lenders. The term of the agreement was extended to October 30, 2030, from March 16, 2028. The expansion option in the revolver was set at an additional $750 million, and all other terms and conditions of the ONE Gas Credit Agreement are materially unchanged.

Commercial Paper - In December 2025, we increased the capacity of our commercial paper to $1.5 billion from $1.35 billion.

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Equity issuances - On December 29, 2025, we settled forward sale agreements for 2,633,700 shares of our common stock for net proceeds of $205.0 million.

In May 2025, we entered into an underwriting agreement and a forward sale agreement for 2,500,000 shares of our common stock. The forward sale agreement provides for settlement on a date, or dates, to be specified at our discretion, but which will occur no later than December 31, 2026.

In February 2023, we entered into an at-the-market equity distribution agreement under which we may issue and sell shares of our common stock with an aggregate offering price up to $300 million. Sales of common stock are made by means of ordinary brokers’ transactions on the NYSE and the NYSE Texas, in block transactions, or as otherwise agreed to between us and the sales agent. We are under no obligation to offer and sell common stock under the program. At December 31, 2025, we had $225.5 million of equity available for issuance under the program.

The following table summarizes our outstanding forward sale agreement at December 31, 2025:

[[GREPCENT_TABLE]]
[["Maturity","Original Shares","Remaining Shares","Forward Price","Net Proceeds Available"],["","(Shares)","(Shares)","(Per share)","(Thousands of dollars)"],["December 31, 2026","2,500,000","269,300","$78.45","$21,217"]]
[[/GREPCENT_TABLE]]

See “Liquidity and Capital Resources” and Note 7 of the Notes to Consolidated Financial Statements in this Annual Report for additional discussion of our at-the-market equity program.

Dividend - In January 2026, we declared a dividend of $0.68 per share ($2.72 per share on an annualized basis) for shareholders of record as of February 20, 2026, payable on March 6, 2026.

Texas House Bill 4384 - In June 2025, Texas House Bill 4384 was signed into law, allowing gas utilities in Texas to defer, and later recover, specific costs related to property, plant and equipment placed in service, but not yet reflected in base rates, including depreciation, ad valorem taxes, and a carrying cost. The RRC is required to adopt rules to implement the new law within 270 days of the effective date. Texas Gas Service began applying the new provisions to property, plant and equipment placed in service but not yet reflected in rates in the third quarter of 2025.

Unsecured Term Loan - On February 11, 2026, the variable interest rate on our unsecured term loan reset for the new six‑month interest period to 6‑month Term SOFR of 3.58% plus a 90‑basis‑point spread, resulting in a 4.48% all‑in interest rate, a decrease from the prior period rate of 4.96%.

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REGULATORY ACTIVITIES

Oklahoma - On February 27, 2025, Oklahoma Natural Gas filed its required PBRC application for the year ended December 31, 2024. The filed request included a $41.5 million base rate revenue increase, $2.4 million energy efficiency incentive, and $13.2 million of estimated EDIT to be credited to customers in 2026. The parties reached a settlement which included a $41.1 million base rate revenue increase, a $2.4 million energy efficiency incentive, and $17.9 million of estimated EDIT to be credited to customers in February 2026. On June 12, 2025, the administrative law judge recommended approval of the settlement. Rates were implemented on June 27, 2025, and the OCC issued an order approving the settlement on July 23, 2025.

Kansas - In April 2025, Kansas Gas Service submitted an application to the KCC requesting an increase of approximately $7.2 million related to its GSRS. In July 2025, the KCC approved a $7.2 million increase effective August 2025.

Texas - In June 2025, Texas Gas Service filed a rate case for all customers in the previously designated Central-Gulf, West-North, and Rio Grande Valley service areas requesting a $41.1 million revenue increase. The filing included a request to consolidate all service areas into a single division. The filing was based on a requested 10.4 percent return on equity and a 59.9 percent common equity ratio. In December 2025, the parties filed a non-unanimous partial settlement agreement for an increase of $15.0 million based on a 9.8 percent return on equity and 59.9 percent common equity ratio, which addressed all issues except consolidation. The consolidation issues were addressed at a hearing before an administrative law judge in November 2025. On December 23, 2025, the administrative law judge recommended a revenue increase of $14.5 million and consolidation of all service areas into a single statewide division. The RRC approved the administrative law judge’s proposed order and new rates and consolidation were effective on January 27, 2026.

West-North Service Area - In February 2025, Texas Gas Service made a GRIP filing for all customers in the previously designated West-North service area, requesting a $8.2 million increase to be effective in June 2025. In May 2025, the RRC approved an increase of $8.2 million, and new rates became effective in June 2025.

Central-Gulf Service Area - In February 2025, Texas Gas Service made a GRIP filing for all customers in the previously designated Central-Gulf service area, requesting a $15.4 million increase to be effective in June 2025. In May 2025, the RRC approved an increase of $15.4 million, and new rates became effective in June 2025.

Rio Grande Valley Service Area - In April 2025, Texas Gas Service made a GRIP filing for all customers in the previously designated Rio Grande Valley service area, requesting a $3.2 million increase to be effective in September 2025. In August 2025, the RRC approved an increase of $2.9 million, and new rates became effective in September 2025.

See “Regulatory Activities,” “Liquidity and Capital Resources,” and Notes 1 and 3 of the Notes to Consolidated Financial Statements in this Annual Report for additional discussion of the securitization transactions.

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FINANCIAL RESULTS AND OPERATING INFORMATION

We operate in one reportable business segment: regulated public utilities that deliver natural gas to residential, commercial, and transportation customers. We evaluate our financial performance principally on net income.

Selected Financial Results - Net income was $264.2 million, or $4.37 per diluted share, $222.9 million, or $3.91 per diluted share, and $231.2, or $4.14 per diluted share, for the years ended December 31, 2025, 2024, and 2023, respectively.

The following table sets forth certain selected financial results for our operations for the periods indicated:

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/OGS/mda/fy2025/
All MD&A years: /company/OGS/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/OGS/mda/fy2024/): filed 2025-02-20; accession 0001587732-25-000013 (https://www.sec.gov/Archives/edgar/data/1587732/000158773225000013/ogs-20241231.htm)
- [FY 2023 MD&A](/company/OGS/mda/fy2023/): filed 2024-02-22; accession 0001587732-24-000013 (https://www.sec.gov/Archives/edgar/data/1587732/000158773224000013/ogs-20231231.htm)
- [FY 2022 MD&A](/company/OGS/mda/fy2022/): filed 2023-02-23; accession 0001587732-23-000015 (https://www.sec.gov/Archives/edgar/data/1587732/000158773223000015/ogs-20221231.htm)
- [FY 2021 MD&A](/company/OGS/mda/fy2021/): filed 2022-02-24; accession 0001587732-22-000019 (https://www.sec.gov/Archives/edgar/data/1587732/000158773222000019/ogs-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 4924 Natural Gas Distribution) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate

Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/OGS.md · JSON record: /company/OGS.json · verified financials: /company/OGS/financials.json / /company/OGS/financials.csv · machine TOC for the whole site: /llms.txt