ONE Gas, Inc. (OGS) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

ONE Gas, Inc. (OGS) Utility Operations & Dividend Profile

ONE Gas, Inc. (OGS) is a regulated natural gas distributor in the central United States, providing services to over 2.2 million customers across three states. With a focus on regulated operations and infrastructure maintenance, ONE Gas offers a stable, albeit moderately growing, profile within the utilities sector.

What Is the Investment Thesis for OGS?

ONE Gas presents a stable investment profile within the regulated utilities sector, driven by its consistent dividend yield of 3.17% and a beta of 0.74, indicating lower volatility compared to the broader market. The company's P/E ratio of 16.77 reflects a reasonable valuation relative to its earnings. Growth catalysts include infrastructure modernization projects and regulatory rate adjustments that allow for cost recovery and margin expansion. However, investors may want to evaluate potential risks such as regulatory changes, fluctuations in natural gas prices, and the ongoing transition towards renewable energy sources. The company's ability to maintain its operational efficiency and navigate the evolving energy landscape will be critical to its long-term performance.

Based on FMP financials and quantitative analysis

OGS Key Highlights

ONE Gas serves 2.2 million customers across Oklahoma, Kansas, and Texas, providing a stable customer base.

• The company operates approximately 41,600 miles of distribution mains and 2,400 miles of transmission pipelines, showcasing its extensive infrastructure.
• ONE Gas has a natural gas storage capacity of 51.4 billion cubic feet, ensuring supply reliability.
• The company's dividend yield is 3.17%, offering a steady income stream for investors.
• ONE Gas has a profit margin of 11.8%, reflecting its ability to generate earnings from its operations.

Who Are OGS's Competitors?

OGS is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are OGS's Key Strengths?

Regulated business model provides stable revenue stream.

• Extensive infrastructure network.
• Large and established customer base.
• Experienced management team.

What Are OGS's Weaknesses?

Dependence on regulatory approvals.

• Exposure to fluctuations in natural gas prices.
• Limited growth potential compared to other sectors.
• Vulnerability to extreme weather events.

What Could Drive OGS Stock Higher?

Infrastructure modernization projects to replace aging pipelines and enhance system reliability.

• Regulatory rate case filings and approvals to recover costs and maintain profitability.
• Expansion of customer base through new residential and commercial developments.
• Investments in CNG and RNG infrastructure to diversify revenue streams.

What Are the Key Risks for OGS?

Financial-distress signal — its Altman Z-Score of 1.06 sits in the distress zone (elevated bankruptcy risk).

• Inconsistent delivery — missed Wall Street EPS estimates in 1 of the last 8 reported quarters.
• Changes in environmental regulations that could increase compliance costs.
• Fluctuations in natural gas prices that could impact profitability.
• Economic downturns that could reduce demand for natural gas.
• Cybersecurity threats to critical infrastructure.
• Public sentiment shifts away from natural gas towards renewable energy sources.

What Are the Growth Opportunities for OGS?

• Infrastructure Modernization: ONE Gas has ongoing opportunities to modernize its existing infrastructure, replacing aging pipelines and upgrading distribution systems. These investments enhance safety, reduce methane emissions, and improve operational efficiency. The market for pipeline replacement and modernization is substantial, with billions of dollars in potential investment over the next decade. These projects are often supported by regulatory frameworks that allow for cost recovery through rate adjustments, providing a predictable return on investment.
• Regulatory Rate Adjustments: As a regulated utility, ONE Gas can pursue rate adjustments to reflect changes in operating costs, capital investments, and other factors. These rate adjustments are subject to regulatory approval but provide a mechanism for the company to maintain its profitability and return on equity. The timing and magnitude of rate adjustments can vary, but they represent a recurring opportunity for ONE Gas to improve its financial performance. Successful rate case outcomes are critical for sustaining investor confidence and supporting future growth.
• Customer Growth in Service Territories: ONE Gas operates in states with growing populations and economies, particularly in Texas. This provides opportunities to expand its customer base by connecting new residential and commercial developments to its natural gas distribution network. The company can also focus on increasing natural gas adoption in areas where alternative fuels are currently used. Targeted marketing and infrastructure investments can drive customer growth and increase overall demand for natural gas within its service territories.
• Expansion of CNG and RNG Services: ONE Gas can explore opportunities to expand its services related to compressed natural gas (CNG) and renewable natural gas (RNG). CNG can be used as an alternative fuel for transportation, while RNG can be produced from organic waste and injected into the natural gas distribution system. These initiatives can diversify the company's revenue streams and enhance its environmental profile. The market for CNG and RNG is growing, driven by government incentives and increasing demand for cleaner energy sources.
• Acquisition of Smaller Utilities: ONE Gas could pursue strategic acquisitions of smaller natural gas distribution utilities in adjacent or complementary markets. These acquisitions can provide economies of scale, expand the company's geographic footprint, and increase its customer base. The utility sector is relatively fragmented, with numerous smaller players that could be attractive acquisition targets. Successful integration of acquired utilities can create significant value for ONE Gas shareholders.

What Are OGS's Competitive Advantages?

• Regulated Monopoly: ONE Gas operates in a regulated environment, which provides a degree of protection from competition.
• Extensive Infrastructure: The company has a large network of pipelines and storage facilities, which would be costly and time-consuming for a competitor to replicate.
• Established Customer Base: ONE Gas has a large and loyal customer base in its service territories.
• Regulatory Expertise: The company has extensive experience navigating the regulatory landscape, which is a significant barrier to entry for new competitors.

What Does OGS Do?

ONE Gas, Inc. was founded in 1906 and is headquartered in Tulsa, Oklahoma. The company operates as a regulated natural gas distribution utility, providing services to residential, commercial, and transportation customers. ONE Gas operates through three primary divisions: Oklahoma Natural Gas, Kansas Gas Service, and Texas Gas Service. These divisions are responsible for the distribution of natural gas within their respective states. As of December 31, 2021, ONE Gas managed a substantial infrastructure network, including approximately 41,600 miles of distribution mains and 2,400 miles of transmission pipelines. Additionally, the company maintains a natural gas storage capacity of 51.4 billion cubic feet. ONE Gas focuses on maintaining and upgrading its infrastructure to ensure reliable service and compliance with regulatory standards. The company's regulated business model provides a relatively stable revenue stream, although growth is often dependent on regulatory approvals and rate adjustments. ONE Gas serves over 2.2 million customers, making it a significant player in the natural gas distribution market within its operating region.

What Products and Services Does OGS Offer?

• Distributes natural gas to residential customers for heating, cooking, and other uses.
• Provides natural gas to commercial businesses for heating, industrial processes, and power generation.
• Supplies natural gas to transportation customers, including CNG fueling stations.
• Operates and maintains a network of distribution mains and transmission pipelines.
• Manages natural gas storage facilities to ensure reliable supply.
• Complies with regulatory requirements related to safety, environmental protection, and customer service.
• Invests in infrastructure upgrades to improve reliability and reduce emissions.

How Does OGS Make Money?

• ONE Gas generates revenue by distributing natural gas to its customers.
• The company's rates are regulated by state utility commissions, ensuring a stable revenue stream.
• ONE Gas invests in infrastructure to maintain and upgrade its distribution network.
• The company manages its natural gas supply to meet customer demand.

What Industry Does OGS Operate In?

ONE Gas operates within the regulated natural gas distribution industry, which is characterized by stable demand and regulated pricing. The industry is undergoing a transition due to increasing environmental concerns and the rise of renewable energy sources. Companies like ONE Gas face the challenge of modernizing their infrastructure while adapting to changing energy policies. The competitive landscape includes other regional natural gas distributors such as NiSource Inc. (NI), OGE Energy Corp. (OGE), and UGI Corporation (UGI). These companies compete for regulatory approvals, infrastructure projects, and customer acquisition within their respective service territories.

Who Are OGS's Key Customers?

• Residential customers who use natural gas for heating, cooking, and water heating.
• Commercial customers, including restaurants, hospitals, and office buildings.
• Industrial customers who use natural gas for manufacturing processes.
• Transportation customers, such as CNG fueling stations and fleet operators.

Over the past six months, ONE Gas, Inc. insiders filed 22 SEC Form 4 transactions — 8 sales and 14 purchases. On net that is roughly 9K shares acquired (about $2.7M) — insiders putting money in tends to read as conviction.

Quarterly Financial Performance: ONE Gas, Inc.

Revenue for ONE Gas, Inc. came in at $411.6M during Q2 FY2026, a 50.5% contraction versus the preceding quarter. The company recorded net income of $46.8M, with diluted EPS of $0.74. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Utilities. Across the four most recent quarters, OGS averaged $1.16 in diluted EPS.

OGS Valuation & Market Position

With a $4.89B market cap, ONE Gas, Inc. sits in the mid-cap segment of the market. Analyst price targets span from $80.00 to $96.00, with a consensus of $88.33. At the current price of $77.97, that implies approximately 13% upside potential. Relative to its peer group, OGS's quantitative score of 68/100 is roughly in line with the peer average of 73/100.

Return on equity for ONE Gas, Inc. stands at 8.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 3.1%, showing how much profit it generates from its asset base. OGS trades at a trailing price-to-earnings ratio of 16.77, roughly in line with the Utilities sector average of ~16.60x. Its free cash flow yield is -4.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.57 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 5.7%, the inverse of the P/E and a quick read on earnings relative to price.

ONE Gas, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.06 places it in the distress zone, a signal of elevated financial risk.

ONE Gas, Inc. has missed Wall Street's EPS estimate in 1 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 3.4% above estimates on average.

Company Profile

ONE Gas, Inc. operates in the Regulated Gas industry within the Utilities sector. It is headquartered in Tulsa, US. The company is led by CEO Robert S. McAnnally. OGS has traded publicly since 2014.

OGS Financials

OGS Latest News

OGS Analyst Consensus

OGS MoonshotScore

ONE Gas, Inc. Utilities Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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