ONE Gas, Inc. (OGS): History, Ownership, Mission, How It Works & Makes Money

As a seasoned financial analyst, when you look at a regulated utility like ONE Gas, Inc. (OGS), are you seeing a stable dividend play or a growth engine fueled by Sun Belt expansion?

This natural gas distribution giant, serving over 2.3 million customers across Oklahoma, Kansas, and Texas, is projecting full-year 2025 net income in the range of $262 million to $266 million, a defintely solid performance driven by new rates and customer growth in its core markets.

But the real story is in the capital deployment: with an estimated $750 million earmarked for infrastructure investments this year, how does this massive spending on system integrity and expansion translate into sustainable value and a projected $4.34 to $4.40 in earnings per diluted share for you as an investor?

ONE Gas, Inc. (OGS) History

You're looking for the true origin story of ONE Gas, Inc., not just the century-old roots of its components. The company you analyze today is a pure-play, regulated utility, a structure that only began in 2014. The critical takeaway is that ONE Gas was designed, via a spin-off, to focus solely on natural gas distribution, shedding the volatile midstream business of its former parent, ONEOK, Inc. This single, transformative decision immediately simplified its risk profile and locked in a strategy of regulated, predictable growth.

Given Company's Founding Timeline

Year established

The current entity, ONE Gas, Inc., was formally established in 2014 as a stand-alone, publicly traded company following its separation from ONEOK, Inc.. Its operating subsidiaries, like Oklahoma Natural Gas Company, trace their history back to 1906.

Original location

The corporate headquarters and original operational base for the spun-off entity were, and remain, in Tulsa, Oklahoma.

Founding team members

The company was not founded by a traditional startup team, but by the executive leadership tasked with executing the spin-off and establishing the new, independent public company. Key leaders at the time of the February 2014 separation included:

• Pierce H. Norton II, who became the first President and Chief Executive Officer.
• Curtis L. Dinan, who was named Senior Vice President, Chief Financial Officer and Treasurer.
• John W. Gibson, who served as Non-executive Chairman of the Board.

Initial capital/funding

The initial capitalization was complex, involving both debt and a tax-free stock distribution. The spin-off was completed by distributing one share of ONE Gas common stock for every four shares of ONEOK common stock held by shareholders. To establish its capital structure, ONE Gas secured approximately $1.19 billion in cash from a private placement of senior notes, which was then used to make a cash payment of about $1.13 billion to ONEOK. Here's the quick math: that cash transfer essentially settled the balance sheet for the assets and liabilities transferred from the parent company.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The most transformative decision was the 2014 separation. It's defintely not a small thing to take a diverse energy business and carve out the utility arm to be its own entity. This move was a clear strategic signal to the market: ONE Gas would be a stable, low-risk investment focused purely on regulated returns.

The company's evolution since then has been a disciplined execution of that strategy, centered on system integrity and regulatory recovery. This is how they drive shareholder value in a regulated environment, not through commodity price swings. For the 2025 fiscal year, this focus translates into expected capital investments of approximately $750 million. This massive investment is primarily for system integrity and replacement projects, which directly grows the anticipated average rate base of $5.8 billion [cite: 1 in first search].

Key strategic shifts underpinning their stability:

• Transitioned from a diversified energy company's division to a 100% regulated utility.
• Implemented extensive pipeline replacement programs to improve safety and reduce Scope 1 emissions by 51%.
• Secured regulatory mechanisms like the Gas System Reliability Surcharge (GSRS) in Kansas and the GRIP in Texas, ensuring timely recovery on infrastructure investments.

This consistent, capital-intensive strategy is why the company narrowed its 2025 net income guidance to a strong range of $262 million to $266 million. You can see how that disciplined focus on infrastructure and regulatory filings directly impacts the bottom line. For more on the strategic direction, read the Mission Statement, Vision, & Core Values of ONE Gas, Inc. (OGS).

ONE Gas, Inc. (OGS) Ownership Structure

ONE Gas, Inc. (OGS) operates with a highly concentrated ownership structure, dominated by institutional investors who collectively control over 95% of the company's stock. This means that major asset managers and investment funds, not individual retail traders, drive the core governance and strategic direction of this regulated utility.

Given Company's Current Status

ONE Gas, Inc. is a publicly traded company, listed primarily on the New York Stock Exchange (NYSE) under the ticker symbol OGS. In a recent move to deepen its ties to key operating regions, the company also began a dual listing on the NYSE Texas, effective November 11, 2025, while keeping its main listing on the NYSE. With a market capitalization of approximately $5.00 billion as of late 2025, the company is a significant player in the regulated natural gas distribution sector.

As a utility, its financial stability is underpinned by a debt-to-equity ratio of 0.74, reflecting a prudent balance sheet for a capital-intensive business. You can dive deeper into the forces driving these major investment decisions at Exploring ONE Gas, Inc. (OGS) Investor Profile: Who's Buying and Why?

Given Company's Ownership Breakdown

Institutional investors, including asset managers and pension funds, hold the vast majority of ONE Gas shares. This concentration is typical for stable, regulated utilities, which are often viewed as long-term, defensive holdings. Insider ownership is small, but the largest individual shareholder is a key figure in the company's history.

The concentration of nearly 96% of the stock in institutional hands means their collective decisions on environmental, social, and governance (ESG) matters defintely carry significant weight.

Given Company's Leadership

The executive team and Board of Directors oversee the company's strategy, focusing on operational excellence and sustainable growth across its service territories in Oklahoma, Kansas, and Texas.

The current leadership structure, as of November 2025, is:

• Robert S. McAnnally: President, Chief Executive Officer, and Director.
• Christopher Paul Sighinolfi: Senior Vice President and Chief Financial Officer.
• Curtis L. Dinan: Senior Vice President and Chief Operating Officer.

A significant board transition was announced in November 2025: John W. Gibson, the current Board Chair who led the company since its 2014 inception, will retire in May 2026. The Board has elected Deborah A.P. Hersman to succeed him as Chair, effective May 21, 2026. Hersman, a seasoned leader with a strong background in safety and governance (including former roles at the National Transportation Safety Board and Waymo), is expected to enhance the board's strategic focus, particularly around safety and public policy.

ONE Gas, Inc. (OGS) Mission and Values

ONE Gas, Inc. (OGS) anchors its operations on a clear, dual-focus purpose: delivering essential energy today while actively investing in a more sustainable future. This commitment is not just about moving gas; it's about providing safe, affordable, and reliable service to its approximately 2.3 million customers across Kansas, Oklahoma, and Texas.

Given Company's Core Purpose

For a regulated utility like ONE Gas, the mission and values are the bedrock of its long-term financial stability and its relationship with regulators and the community. The company's strategy is simple: focus on asset integrity-which drives their massive capital expenditure (CapEx)-and grow the customer base.

Official mission statement

The mission statement cuts straight to the utility's essential role, framing its daily operations as a long-term societal benefit. It's a clean statement that connects the core business to a forward-looking goal.

• Deliver natural gas for a better tomorrow.

Here's the quick math on that commitment: For the 2025 fiscal year, ONE Gas has narrowed its net income guidance to a range of $262 million to $266 million, driven by new rates and customer growth. This financial performance directly funds the infrastructure needed for that 'better tomorrow.'

Vision statement

The vision statement clarifies who benefits from the mission-all stakeholders-and what the company aims to be: a top-tier operator. This is a crucial distinction for investors, as it signals a focus on operational excellence (premier) and shareholder returns (value).

• Be a premier natural gas distribution company.
• Create exceptional value for all stakeholders: employees, customers, investors, and the communities served.

To achieve this vision, the company is deploying approximately $750 million in 2025 for capital investments, primarily targeting system integrity and replacement projects. This investment ensures the physical system can support the vision of being a reliable, premier distributor.

Given Company's Core Values

The core values are the cultural blueprint, especially in a heavily regulated industry where safety and ethics are non-negotiable. They are a defintely clear guide for every employee, from the field tech to the CEO.

• Safety: Operating safely and in an environmentally responsible manner is the No. 1 core value.
• Ethics: Being accountable to the highest ethical standards, committed to compliance, honesty, trust, and integrity.
• Inclusion & Diversity: Embracing a culture that encourages collaboration, recognizing every employee contributes to success.
• Service: Providing exceptional service to customers and supporting each other internally.
• Value: Creating value for all stakeholders, including a target dividend payout ratio of 55% to 65% of net income.

This focus on value creation is reflected in the 2025 diluted earnings per share (EPS) guidance of $4.34 to $4.40. You can find a more detailed breakdown of these foundational principles here: Mission Statement, Vision, & Core Values of ONE Gas, Inc. (OGS).

Given Company slogan/tagline

While ONE Gas doesn't use a flashy, consumer-facing slogan, their mission statement serves as the most consistent and authoritative tagline, encapsulating their core business and future-facing perspective.

• Delivering Natural Gas for a Better Tomorrow.

The company's stability, backed by an anticipated average rate base of $5.8 billion in 2025 (the value of assets on which they can earn a regulated return), makes this tagline a statement of operational fact, not just marketing fluff.

ONE Gas, Inc. (OGS) How It Works

ONE Gas, Inc. is a pure-play, 100% regulated natural gas distribution utility, which means its core business is the stable, low-risk delivery of natural gas to homes and businesses across Oklahoma, Kansas, and Texas. The company creates value by earning a regulated rate of return on its infrastructure investments (rate base), which is projected to average $5.8 billion in 2025.

This model ensures predictable earnings, but still requires constant, strategic capital deployment to maintain and expand its vast pipeline system. You're buying into a utility that prioritizes system safety and organic customer growth, especially in the booming markets of Texas and Oklahoma.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

The operational framework focuses on three clear pillars: system integrity, customer growth, and regulatory execution. This is a capital-intensive business, so the flow of money is highly visible and tied directly to infrastructure spending.

Here's the quick math on capital deployment for 2025: Total capital investments, including asset removal costs, are expected to be approximately $750 million. This spending is the engine of the rate base growth that ultimately drives your returns.

• Infrastructure Modernization: The majority of the 2025 capital budget is targeted at system integrity and replacement projects, ensuring safety and compliance.
• Customer Expansion: Around $180 million of the total capital investment is dedicated to extending service to new customers, primarily in the high-growth areas of Texas and Oklahoma.
• New Meter Installation: The company added approximately 24,000 new meter sets on a trailing twelve-month basis as of August 2025, showing strong organic growth.
• Regulatory Recovery: Operating income for the nine months ended September 30, 2025, saw an increase of $73.0 million from new rates implemented across its jurisdictions, which is defintely a key driver for the year.

The company manages its commodity costs through regulatory mechanisms (purchased gas adjustment clauses), passing fluctuations directly to customers, which stabilizes its net profit margin, reported at 10.8% as of November 2025.

Given Company's Strategic Advantages

In the utility space, competitive advantage is less about innovation and more about regulatory moat and scale. ONE Gas excels here by controlling essential infrastructure in key US growth states. If you want to understand the long-term commitment, start with their Mission Statement, Vision, & Core Values of ONE Gas, Inc. (OGS).

• Regulatory Moat: Operating as a 100% regulated utility minimizes earnings volatility, as rates are set by state commissions to allow a reasonable return on the rate base.
• Favorable Geography: Proximity of its supply assets to major gas reserves lowers transportation and storage costs, providing a structural cost advantage over rivals.
• High Residential Concentration: With over 92% of customers being residential, the demand base is highly stable and less susceptible to economic downturns than industrial demand.
• Strong Financial Predictability: Management narrowed its 2025 net income guidance to a range of $262 million to $266 million, with diluted earnings per share (EPS) expected between $4.34 and $4.40, reflecting high confidence in its regulated model.

ONE Gas, Inc. (OGS) How It Makes Money

ONE Gas, Inc. generates its revenue as a 100% regulated natural gas utility, meaning its income is stable and predictable, primarily coming from the delivery of natural gas to over 2.3 million residential, commercial, and industrial customers across Oklahoma, Kansas, and Texas. The company's financial engine is built on state-approved rates that allow it to recover operating costs and earn a regulated return on its invested capital (rate base).

ONE Gas, Inc.'s Revenue Breakdown

The company's revenue streams are highly concentrated in its core regulated distribution business, which is the reliable foundation of its financial model. Based on the 2025 Trailing Twelve Months (TTM) revenue of approximately $2.36 billion, the breakdown is clear.

The largest stream, Natural Gas Distribution, represents about $1.60 billion of TTM revenue and is stable because the company passes through the cost of the commodity (natural gas) to customers without a profit margin, focusing instead on the delivery fee.

Business Economics

The core of ONE Gas's profitability is the regulated utility model, which provides a high degree of earnings visibility, but also caps potential returns. State utility commissions set the rates the company can charge, aiming for a fair return on equity (ROE) on the utility's rate base (the value of its assets).

• Rate Base Growth is Key: The primary driver for earnings growth is increasing the rate base, which is the total value of assets on which the company is permitted to earn a return. The anticipated average rate base for 2025 is approximately $5.8 billion.
• Capital Investment Cycle: The company plans to invest approximately $750 million in capital expenditures (CapEx) for 2025, with a focus on system integrity and replacement projects, which directly grows the rate base and, consequently, future earnings.
• Decoupling Mechanism (In Part): Many of the company's regulatory structures use mechanisms that separate revenue recovery from the volume of gas sold. This is a crucial defense against weather volatility, ensuring reliable cash flow even during warmer winters.
• New Rates Drive Income: Operating income for the nine months ended September 30, 2025, was boosted by an increase of $92.2 million from new rates approved in its service territories.

Honestly, in a regulated business, growth is less about market share and more about smart capital deployment. Breaking Down ONE Gas, Inc. (OGS) Financial Health: Key Insights for Investors

ONE Gas, Inc.'s Financial Performance

As of November 2025, the company's financial performance reflects the stability and incremental growth inherent in its regulated structure, driven by rate case approvals and capital investment. This is a low-margin, capital-intensive business; that's the reality.

• 2025 Earnings Guidance: The company narrowed its 2025 diluted earnings per share (EPS) guidance to a range of $4.34 to $4.40.
• Net Income Projection: Full-year 2025 net income is expected to be in the range of $262 million to $266 million.
• Profitability Metrics: The Net Margin (Net Income divided by Revenue) is approximately 10.76%, and the Return on Equity (ROE) is around 8.06% as of the third quarter of 2025, which is typical for a utility focused on stability.
• Dividend Commitment: The board declared a quarterly dividend of $0.67 per share in Q4 2025, aiming for an average annual dividend growth rate of 1% to 2% through 2029, with a target payout ratio of 55% to 65% of net income.

Here's the quick math: The dividend payout ratio target shows management's commitment to returning capital while still funding the significant $750 million annual CapEx needed to grow the rate base. What this estimate hides is the ongoing regulatory risk; if rate cases are delayed, that growth slows defintely.

ONE Gas, Inc. (OGS) Market Position & Future Outlook

ONE Gas, Inc. maintains a strong, defensive position as a pure-play, regulated natural gas utility, dominating its core regional markets with unparalleled market share. The company is focused on a predictable, capital-intensive strategy, projecting a 2025 net income range of $262 million to $266 million, translating to diluted earnings per share (EPS) of $4.34 to $4.40. This stability comes from its regulated rate base model, which is defintely the core of its value proposition.

The future outlook is anchored by continued infrastructure investment, with approximately $750 million earmarked for capital expenditures in 2025, primarily for system safety and replacement projects. This investment is the engine for future rate base growth, which is expected to average 4% to 6% annually through 2029. The company's dual listing on NYSE Texas, effective November 11, 2025, is a strategic move to boost investor visibility in a key growth state.

Competitive Landscape

In the regulated utility space, competition isn't about price wars; it's about scale, regulatory efficacy, and operational footprint. ONE Gas holds a unique position due to its high concentration of market share in its core service territories, but its overall scale is smaller than the industry giant, Atmos Energy. Here's a look at the landscape:

Opportunities & Challenges

The company's opportunities are clear: lean into population growth and secure favorable regulatory outcomes. But still, the industry faces macro headwinds like rising costs and the long-term energy transition debate. Here's the quick map of what's ahead:

Industry Position

ONE Gas is a top-tier, mid-cap utility, firmly entrenched in the S&P MidCap 400 Index, which speaks to its reliability and stability. Its position is defined by its deep regional dominance rather than national scale. The company serves over 2.3 million customers, and its strength lies in the high concentration of its customer base in a limited number of jurisdictions where it is the primary, or only, provider.

The strategy is simple: invest heavily in the regulated asset base (rate base) to ensure safety and reliability, then recover that investment through approved rates. The anticipated average rate base for 2025 is $5.8 billion. This model insulates the company from commodity price volatility and drives predictable earnings growth, which is what utility investors want.

• Maintain 2025 capital spending at approximately $750 million for system integrity.
• Focus $180 million of CapEx on new customer extensions in growth markets.
• Commit to an average annual dividend growth rate of 1% to 2% through 2029.
• Leverage the natural gas price advantage, which is often 2x to 4x less expensive than electricity in its service states.

For a deeper dive into the company's long-term vision, you should review the Mission Statement, Vision, & Core Values of ONE Gas, Inc. (OGS).