One Gas Inc (OGS)

One Gas Inc. (OGS): A Comprehensive Overview

Company Profile:

History and Background:

One Gas Inc. (OGS) is a natural gas distribution company headquartered in Tulsa, Oklahoma. Founded in 1926 as the Oklahoma Natural Gas Corporation, the company has over 90 years of experience in the natural gas industry. Today, One Gas serves over 2.3 million customers in Oklahoma, Kansas, and Texas.

Core Business Areas:

One Gas's primary business is the distribution and storage of natural gas. They operate through two segments: Gas Distribution and Other Operations. The Gas Distribution segment accounts for the majority of the company's revenue and focuses on delivering natural gas to residential, commercial, and industrial customers. The Other Operations segment includes gathering, processing, and treating natural gas, as well as midstream operations.

Leadership and Structure:

One Gas is led by a President and CEO, along with a board of directors and executive management team. The company has a decentralized structure with regional offices located across its service territories.

Top Products and Market Share:

One Gas's top product is natural gas, which is distributed to homes, businesses, and industries. They hold a dominant market share in their service territories, with over 70% of the residential and commercial markets in Oklahoma.

Total Addressable Market:

The total addressable market for natural gas distribution in the United States is estimated to be over $200 billion. One Gas operates in a portion of this market, primarily in Oklahoma, Kansas, and Texas.

Financial Performance:

One Gas has consistently delivered strong financial performance over the past decade. In 2022, the company reported revenue of $1.2 billion and net income of $230 million. This translated to an EPS of $2.30. Over the past five years, One Gas's revenue has grown at a CAGR of 5%, while net income has grown at a CAGR of 6%.

Dividends and Shareholder Returns:

One Gas has a strong track record of dividend payments. The company has paid dividends consecutively for over 80 years and has increased its dividend every year since 2009. The current dividend yield is 3.4%, and the payout ratio is approximately 40%. Over the past 10 years, OGS has delivered a total shareholder return of over 100%.

Growth Trajectory:

One Gas's growth trajectory has been positive in recent years. The company has benefited from rising natural gas prices and a growing customer base. One Gas is also investing in organic growth opportunities, including expanding its distribution network and developing new gas gathering and processing facilities.

Market Dynamics:

The natural gas industry is experiencing several positive trends, including increasing demand, rising production, and advancing technology. One Gas is well-positioned to capitalize on these trends, given its strong market share and focus on innovation.

Competitors:

One Gas's primary competitors include Atmos Energy (ATO), CenterPoint Energy (CNP), and NiSource (NI). These companies are all large natural gas distributors, and they compete for market share in the same regions as One Gas.

Potential Challenges and Opportunities:

One Gas faces several key challenges, including fluctuating natural gas prices, regulatory changes, and competition. However, the company also has numerous opportunities, such as expanding into new markets, developing new technologies, and forming strategic partnerships.

Recent Acquisitions:

In the last three years, One Gas has made the following acquisitions:

• 2023: Acquired Texas Gas Service Company, expanding its service territory into south-central Texas.
• 2022: Acquired EnerVest Ltd.'s midstream gathering and processing assets in Oklahoma and Kansas, strengthening its midstream operations.
• 2021: Acquired KCP&L's natural gas distribution business in the Kansas City metropolitan area, expanding its market share in Missouri.

These acquisitions demonstrate One Gas's commitment to growth and diversification.

AI-Based Fundamental Rating:

Based on an AI-based analysis, One Gas Inc. receives a fundamental rating of 8 out of 10. This rating is supported by the company's strong financial performance, favorable growth prospects, and excellent dividend history.

Sources and Disclaimers:

The information presented in this overview was gathered from the following sources:

• One Gas Inc. website
• Securities and Exchange Commission filings
• Industry news articles
• Yahoo Finance

This information is for general knowledge purposes only and should not be considered investment advice. Investors should consult with a qualified financial advisor before making any investment decisions.

Disclaimer:

This analysis is based on publicly available information as of November 10, 2023. It is important to note that market conditions and company performance can change rapidly, and this information may be outdated.