ONE Gas, Inc. (OGS): Análisis PESTLE [Actualizado en Ene-2025]

En el panorama dinámico de la distribución de energía, One Gas, Inc. (OGS) se encuentra en la intersección de desafíos complejos y oportunidades transformadoras. Este análisis integral de la mano presenta los factores externos multifacéticos que configuran la trayectoria estratégica de la compañía, desde navegar en entornos regulatorios estrictos hasta adoptar innovaciones tecnológicas que redefinen la infraestructura energética. Al diseccionar las dimensiones políticas, económicas, sociológicas, tecnológicas, legales y ambientales, exploraremos cómo un gas se está posicionando para prosperar en un ecosistema de energía cada vez más volátil y basado en la sostenibilidad.

One Gas, Inc. (OGS) - Análisis de mortero: factores políticos

Regulado por políticas energéticas estatales y federales

One Gas, Inc. opera bajo la supervisión regulatoria de múltiples agencias:

Cuerpo regulador	Jurisdicción	Impacto regulatorio
Comisión Reguladora Federal de Energía (FERC)	Operaciones interestatales de gas natural	Regulación integral de tasa e infraestructura
Comisión de la Corporación de Oklahoma	Operaciones estatales de Oklahoma	Supervisión de distribución en intraestatate
Comisión de Kansas Corporation	Operaciones estatales de Kansas	Regulación de distribución local

Impacto de la legislación sobre el cambio climático

Los riesgos legislativos potenciales incluyen:

• Objetivos de reducción de emisiones de carbono propuestas de 50-52% para 2030
• Regulaciones potenciales de emisiones de metano
• El aumento de los costos de cumplimiento estimados en $ 12-15 millones anuales

Vulnerabilidad de la cadena de suministro de energía geopolítica

Métricas de exposición a la cadena de suministro de gas natural:

Factor de riesgo	Porcentaje de vulnerabilidad	Estrategia de mitigación
Interrupción del suministro doméstico	17%	Abastecimiento regional diversificado
Fluctuaciones del mercado internacional	8%	Contratos de suministro a largo plazo

Mandatos de cumplimiento del gobierno

Requisitos de cumplimiento de la reducción de la eficiencia energética y la reducción de emisiones:

• Costos de cumplimiento de la Ley de Aire Limpio de la EPA: $ 7.3 millones en 2023
• Inversiones de modernización de infraestructura: $ 45 millones en 2024
• Objetivos de reducción de gases de efecto invernadero: 30% para 2030

One Gas, Inc. (OGS) - Análisis de mortero: factores económicos

Sensibilidad a las fluctuaciones de los precios del gas natural en el mercado

A partir del cuarto trimestre de 2023, los precios del gas natural demostraron una volatilidad significativa:

Período	Precio de gas natural ($/mmbtu)	Varianza de precio
Enero de 2023	3.87	±12.5%
Julio de 2023	2.65	±9.3%
Diciembre de 2023	3.12	±11.7%

Dependencia de las condiciones económicas regionales

Indicadores económicos para Oklahoma, Kansas y Texas:

Estado	Crecimiento del PIB (2023)	Tasa de desempleo	Empleo del sector energético
Oklahoma	2.4%	3.6%	84,500 trabajos
Kansas	1.9%	3.2%	42,300 trabajos
Texas	3.1%	4.1%	213,700 trabajos

Inversión en modernización de infraestructura

One Gas Infraestructura Métricas de inversión para 2023:

• Gasto total de capital: $ 342.6 millones
• Reemplazo de la tubería: 1,127 millas
• Instalaciones de medidores inteligentes: 237,000 unidades
• Presupuesto de actualización de tecnología: $ 54.3 millones

Impactos potenciales de ingresos

Escenarios de proyección de ingresos:

Guión	Ingresos proyectados	Impacto potencial
Base	$ 2.1 mil millones	0%
Recesión económica	$ 1.87 mil millones	-11.2%
Cambio de mercado energético	$ 1.95 mil millones	-7.1%

One Gas, Inc. (OGS) - Análisis de mortero: factores sociales

Creciente demanda de consumidores de soluciones de energía limpia y sostenible

Según la Administración de Información de Energía de EE. UU. (EIA), el consumo de energía renovable en los Estados Unidos alcanzó el 12.2% del consumo total de energía de EE. UU. En 2022. Un Gas, Inc. reportó $ 2.04 mil millones en ingresos operativos para 2023, con un enfoque creciente en una infraestructura sostenible.

Año	Consumo de energía renovable (%)	Inversiones sostenibles de un gas ($ M)
2022	12.2%	45.6
2023	13.5%	62.3

Cambios demográficos en los territorios de servicio que afectan los patrones de consumo de energía

Un gas atiende a aproximadamente 2.2 millones de clientes en Oklahoma, Kansas y Texas. El crecimiento de la población en estos estados entre 2020-2023 indica cambios potenciales en el consumo de energía.

Estado	Crecimiento de la población (2020-2023)	Recuento de clientes residenciales
Oklahoma	0.3%	722,000
Kansas	0.1%	516,000
Texas	1.7%	962,000

Aumento de la conciencia pública del impacto ambiental del gas natural

La Agencia de Protección Ambiental informó que la producción de gas natural representa el 33% de las emisiones de metano en los Estados Unidos en 2022. Un gas se ha comprometido a reducir las emisiones de carbono en un 40% para 2030.

Iniciativa de participación comunitaria e responsabilidad social corporativa

Un gas invirtió $ 3.2 millones en programas de desarrollo comunitario durante 2023. La compañía apoya a 127 organizaciones benéficas locales en sus territorios de servicio.

Categoría de inversión comunitaria	Monto de financiación ($)
Subvenciones de educación	1,200,000
Programas ambientales	850,000
Soporte de infraestructura local	1,150,000

One Gas, Inc. (OGS) - Análisis de mortero: factores tecnológicos

Implementación de la infraestructura de medición avanzada (AMI) para mejorar el servicio

Un gas invirtió $ 42.3 millones en infraestructura de medición avanzada en 2023. La compañía desplegó 327,000 medidores inteligentes en sus territorios de servicio en Oklahoma, Kansas y Texas.

Métrico	2023 datos
Medidores inteligentes totales desplegados	327,000
Inversión de infraestructura de AMI	$ 42.3 millones
Mejora de la precisión de la lectura del medidor	99.7%

Invertir en capacidades de transformación digital y análisis de datos

Un gas asignó $ 18.7 millones para iniciativas de transformación digital en 2023. La compañía implementó algoritmos de aprendizaje automático para optimizar la eficiencia operativa y el mantenimiento predictivo.

Métrica de transformación digital	Valor 2023
Inversión de transformación digital	$ 18.7 millones
Costo de plataforma de análisis de datos	$ 6.2 millones
Mejora de la eficiencia operativa	12.4%

Explorando tecnologías de cuadrícula inteligente y soluciones de eficiencia energética

Un gas invirtió $ 25.5 millones en tecnologías de cuadrícula inteligente durante 2023. La compañía implementó proyectos de modernización de red en sus territorios de servicio.

Métrica de tecnología de cuadrícula inteligente	2023 datos
Inversión de red inteligente	$ 25.5 millones
Mejora de la confiabilidad de la cuadrícula	15.6%
Proyectos de eficiencia energética	37 implementado

Desarrollo de medidas de ciberseguridad para proteger la infraestructura crítica

Un gas comprometió $ 14.6 millones a la infraestructura y protección de ciberseguridad en 2023. La compañía mejoró sus protocolos de seguridad de red e implementó sistemas avanzados de detección de amenazas.

Métrica de ciberseguridad	Valor 2023
Inversión de ciberseguridad	$ 14.6 millones
Tiempo de respuesta a incidentes de seguridad	12 minutos
Precisión de detección de amenazas	99.3%

One Gas, Inc. (OGS) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones de servicios públicos federales y estatales

One Gas, Inc. cumple con las regulaciones de múltiples agencias federales y estatales, que incluyen:

Agencia reguladora	Requisitos de cumplimiento específicos	Costo de cumplimiento anual
Comisión Reguladora Federal de Energía (FERC)	Regulaciones de transporte de gas natural	$ 3.2 millones
Administración de seguridad de tuberías y materiales peligrosos (PHMSA)	Normas de seguridad de la tubería	$ 2.7 millones
Comisiones estatales de servicios públicos	Regulaciones del área de servicio	$ 1.5 millones

Navegación de requisitos complejos de cumplimiento ambiental y de seguridad

Métricas de cumplimiento ambiental para One Gas, Inc.:

Área de cumplimiento	Reglamentario	Tasa de cumplimiento
Control de emisiones	Ley de aire limpio de la EPA	99.8%
Detección de fugas de metano	Regulaciones de metano de la EPA	99.6%
Protección contra el agua subterránea	Ley de agua potable segura	100%

Gestión de riesgos legales potenciales relacionados con la infraestructura y la prestación de servicios

Estadísticas de gestión de riesgos legales:

• Presupuesto anual de mitigación de riesgos legales: $ 4.5 millones
• Número de casos legales activos en 2023: 12
• Acuerdos legales totales en 2023: $ 1.3 millones

Adherirse a los marcos regulatorios para las estructuras de tarifas y los precios

Detalles de cumplimiento de la regulación de tasas:

Jurisdicción regulatoria	Proceso de aprobación de tarifas	Duración del caso de la tasa promedio
Comisión de la Corporación de Oklahoma	Revisión completa de costo de servicio	8 meses
Comisión de Kansas Corporation	Fabricación de ratas basada en el rendimiento	6 meses
Comisión de servicios públicos de Texas	Revisión de tarifa integral	10 meses

One Gas, Inc. (OGS) - Análisis de mortero: factores ambientales

Compromiso de reducir las emisiones de carbono y la huella de gases de efecto invernadero

One Gas, Inc. informó un Reducción del 15% en las emisiones directas de gases de efecto invernadero De 2019 a 2022. Las emisiones totales de carbono de la compañía en 2022 fueron 287,000 toneladas métricas equivalentes de CO2.

Año	Emisiones totales de carbono (toneladas métricas CO2E)	Porcentaje de reducción
2019	338,000	-
2020	312,000	7.7%
2021	298,000	12.1%
2022	287,000	15%

Invertir en energía renovable y desarrollo de infraestructura sostenible

En 2022, un gas invirtió $ 42.3 millones en infraestructura sostenible y proyectos de energía renovable. La cartera de energía renovable de la compañía incluye:

• Inversiones de infraestructura solar: $ 18.7 millones
• Actualizaciones de eficiencia energética: $ 15.6 millones
• Tecnologías de reducción de metano: $ 8 millones

Implementación de tecnologías de detección de fugas y mitigación

Un gas desplegó sistemas avanzados de detección de fugas en su red de gasoductos de gas natural de 40,000 millas. En 2022, la empresa:

• Detectado y reparado 1.237 fugas de gas menor
• Invirtió $ 22.5 millones en tecnología de detección de fugas
• Reducidas emisiones de metano en un 0.03% a través de intervenciones específicas

Métrica de detección de fugas	Rendimiento 2022
Red total de tuberías	40,000 millas
Fugas detectadas	1,237
Inversión tecnológica	$ 22.5 millones
Reducción de la emisión de metano	0.03%

Equilibrar la distribución de gas natural con esfuerzos de conservación ambiental

Un gas implementó una estrategia integral de conservación ambiental con un presupuesto de $ 67.5 millones en 2022, centrándose en:

• Proyectos de restauración del ecosistema: $ 15.3 millones
• Preservación del hábitat de vida silvestre: $ 12.2 millones
• Gestión de tierras sostenibles: $ 40 millones

Área de conservación	Inversión 2022	Acres impactados
Restauración del ecosistema	$ 15.3 millones	4.500 acres
Preservación del hábitat de la vida silvestre	$ 12.2 millones	3,200 acres
Gestión de tierras sostenibles	$ 40 millones	7.800 acres

ONE Gas, Inc. (OGS) - PESTLE Analysis: Social factors

The social factors impacting ONE Gas are a clear map of opportunity and risk, driven by the demographic shifts in its service territory and its internal culture. The short takeaway is this: the company is positioned in some of the fastest-growing, most affordable markets in the U.S., which fuels customer growth, but that growth requires sustained investment in a highly engaged workforce.

You're looking at a utility that serves over 2.3 million customers across Kansas, Oklahoma, and Texas, and that scale is a significant social footprint. The company's success is defintely tied to the health and growth of its major metro areas, especially along the high-growth Interstate 35 corridor, which stretches from Kansas City down to Austin.

Customer Growth in High-Growth, Low-Cost-of-Living Metro Areas

ONE Gas benefits directly from the migration trends favoring its core markets. While Austin, Texas, is a high-growth magnet for technology and new business, Oklahoma City offers a compelling affordability story that attracts a different segment of the population and commercial activity. This dual-market dynamic provides a steady stream of new customer connections, which translates directly into rate base growth and justifies capital investment.

For example, the Austin metro area population is estimated at 2,313,000 in 2025, with an annual growth rate of 1.72% from 2024, leading all major Texas metros. But, Austin's cost of living index is high, around 139.5 in August 2025, nearly 40% higher than the national average. Contrast this with Oklahoma City, which is a true low-cost anchor for the company.

Here's the quick math on the social-economic contrast in two key markets:

Metro Area (2025)	Estimated Population (Metro Area)	Annual Growth Rate (Approx.)	Composite Cost of Living Index (U.S. Avg. = 100)	Utility Index (Natural Gas/Electric Relevance)
Austin, Texas	2,313,000	1.72%	139.5 (39.5% above national avg.)	98.6 (Slightly below national avg.)
Oklahoma City, Oklahoma	1,037,000	0.97%	81.9 (18.1% below national avg.)	97.9 (Slightly below national avg.)

What this estimate hides is the sheer volume of new construction and commercial projects in these areas, which drives demand for new natural gas connections, especially in the suburbs of Austin. The low utility index in both cities, compared to the national average, also reinforces the affordability of natural gas as an energy choice, a key social benefit for customers.

Employee Engagement and Workforce Culture

A utility's workforce culture is a critical social factor, impacting safety, efficiency, and customer service. ONE Gas has made this a clear priority. The company's employee engagement scores, measured by Gallup, place it in the top quartile of Gallup's Overall Company Database as of July 2025. This sustained high engagement, which has increased for the eighth consecutive year, suggests a stable and productive workforce.

A highly engaged workforce is a competitive advantage in a tight labor market, helping to mitigate the operational risk associated with high employee turnover and safety incidents.

• Engagement ranks in the top quartile of Gallup's database.
• Workforce stability is crucial for system integrity and safety compliance.
• High engagement supports the company's continuous safety recognition from the American Gas Association.

Community Investment and Social License to Operate

The company maintains its social license to operate (SLO) through significant community investment, which builds goodwill and trust with local stakeholders, a vital factor for a regulated utility. In 2024, the company's total community giving, including Foundation grants and corporate sponsorships, reached $3.3 million. Plus, employees and retirees dedicated over 10,000 volunteer hours to community initiatives in 2024.

This commitment focuses on key social needs like education, workforce development, and community enrichment, aligning the company's philanthropic efforts with its long-term need for a skilled local workforce and a safe operating environment. This level of giving, particularly the employee volunteerism, reinforces a positive brand image in the communities where rate cases and regulatory approvals are decided.

ONE Gas, Inc. (OGS) - PESTLE Analysis: Technological factors

The technological landscape for ONE Gas, Inc. is defined by a necessary, massive capital investment program focused on system modernization and a strategic, early-stage exploration of future low-carbon fuels. The company's core technology spend is not on disruptive innovation, but on the disciplined, regulated replacement of aging infrastructure, which is the most critical near-term action to ensure safety and meet environmental targets.

$750 million CapEx heavily funds system integrity and pipeline replacement

For the 2025 fiscal year, ONE Gas, Inc. is directing a significant portion of its capital plan toward maintaining and modernizing its core delivery system. Total capital investments, including asset removal costs, are expected to be approximately $750 million. This spending is primarily targeted at system integrity and pipeline replacement projects, which is typical for a regulated natural gas utility focused on safety and reliability.

To put this into perspective, the capital allocated for system integrity and replacement is more than four times the amount budgeted for customer growth. Capital investments for extensions to new customers are expected to be approximately $180 million in 2025, largely driven by continued growth opportunities in Oklahoma and Texas. This heavy skew toward maintenance over expansion shows where the immediate technological priority lies: ensuring the existing network is safe and compliant.

Here's the quick math on the 2025 capital investment split:

2025 Capital Investment Category	Approximate Amount	Primary Goal
System Integrity & Replacement	>$570 million (estimated)	Safety, Compliance, Emissions Reduction
Extensions to New Customers	$180 million	Customer & Rate Base Growth
Total Capital Investments	Approximately $750 million	System Modernization & Expansion

Vintage pipeline replacement drives emissions reduction and system safety

The vintage pipeline replacement and protection program is the key technological driver for both safety and environmental sustainability. This program replaces older, leak-prone materials-like bare steel and cast iron-with modern, durable polyethylene pipe. This is a critical investment to reduce methane emissions (Scope 1 emissions) and enhance system safety across the company's 66,735 miles of distribution and transmission pipelines.

The technology is working. Through this program, ONE Gas, Inc. has already achieved a 51% reduction in Scope 1 emissions from distribution pipelines, measured from a 2005 baseline. This keeps the company on track to meet its 2035 goal of a 55% reduction. Honestly, hitting 51% reduction already is defintely a strong indicator of technological execution.

• Reduce Scope 1 Emissions: Achieved 51% reduction toward the 2035 target of 55%.
• Improve Safety: Recognized for eight consecutive years by the American Gas Association for excellence in employee safety.
• Scale of Replacement: On average, the company has replaced 220 miles of vintage pipelines per year since 2014.

Exploring hydrogen as a potential long-term, low-carbon fuel source

While the immediate focus is on pipeline replacement, the company is strategically evaluating next-generation energy technologies to future-proof its system. ONE Gas, Inc. is actively exploring the utilization of low-carbon hydrogen and carbon capture technologies. This exploration is a necessary hedge against long-term decarbonization trends that could eventually phase out traditional natural gas.

What this estimate hides is that this is still in the research and evaluation phase; there is no public information on a large-scale 2025 hydrogen pilot program or a specific CapEx allocation for hydrogen infrastructure this year. Instead, the company is also looking at more near-term options like Renewable Natural Gas (RNG), which can be blended into the existing system today. The technology challenge here is less about the fuel itself and more about the cost-effective and safe integration of these new molecules into the existing distribution network.

Increasing cyber-attack risk requires continuous IT infrastructure enhancements

The increasing digitalization of utility operations, including automated meter reading and remote system monitoring, has amplified the risk of cyber-attacks. The energy industry as a whole is seeing a surge in vulnerability, with global cybersecurity spending in the sector expected to reach $10 billion by 2025. This isn't just a global trend; it directly impacts ONE Gas, Inc.'s operational technology (OT) and information technology (IT) systems.

The company acknowledges this risk by including IT infrastructure enhancements and cybersecurity within its 2025 capital expenditures. Furthermore, the year-to-date 2025 financial results show an increase of $1.3 million in information technology expense, which is a clear sign of continuous investment to fortify its digital defenses against evolving threats. A single, successful attack on a control system could lead to significant service disruption and safety hazards, so the continuous enhancement of IT systems is a non-negotiable operational cost.

Next Step: Operations/IT: Review the $1.3 million increase in IT expense to ensure it is allocated to high-priority areas like network segmentation and threat detection systems by year-end.

ONE Gas, Inc. (OGS) - PESTLE Analysis: Legal factors

The core of ONE Gas, Inc.'s (OGS) business model is defined by its status as a 100-percent regulated natural gas utility, meaning its financial health is inextricably tied to the decisions of state regulatory bodies. You need to understand that every dollar of capital investment, like replacing old pipe, must eventually be approved by a commission to be recovered in customer rates. This is a high-stakes, ongoing legal and political negotiation.

Dependent on Oklahoma, Kansas, and Texas regulatory bodies for rate approval

The company's revenue stability depends entirely on securing timely rate adjustments from three key state regulatory authorities. These bodies-the Oklahoma Corporation Commission (OCC), the Kansas Corporation Commission (KCC), and the Railroad Commission of Texas (RRC)-determine the allowed rate of return (ROE) and the recovery of capital expenditures for Oklahoma Natural Gas, Kansas Gas Service, and Texas Gas Service, respectively. This structure provides revenue predictability, but still requires constant, complex legal filings and negotiations. Honestly, the regulatory environment is the single biggest determinant of OGS's earnings growth.

Here is a quick overview of the regulatory bodies and their corresponding ONE Gas divisions:

• Oklahoma Corporation Commission (OCC): Oversees Oklahoma Natural Gas, the largest natural gas distributor in Oklahoma.
• Kansas Corporation Commission (KCC): Regulates Kansas Gas Service, the largest natural gas distributor in Kansas.
• Railroad Commission of Texas (RRC): Governs Texas Gas Service, the third largest natural gas distributor in Texas.

Texas Gas Service filed a rate case in June 2025 requesting a $41.1 million revenue increase

Texas Gas Service filed a Statement of Intent to Change Rates with the RRC on June 30, 2025, proposing a significant increase in annual systemwide revenues of approximately $41.1 million. This filing also included a proposal to consolidate the three existing Texas service areas-Central-Gulf, Rio Grande Valley, and West-North-into a single Texas Gas Service territory, which would simplify future rate-making. The requested increase represents a 9.83% hike excluding the cost of gas. This is a major change, as defined by the Texas Utilities Code, because the proposed rates will increase total aggregate revenues by more than two and one-half percent.

In addition to this major rate case, the company's subsidiaries have been actively seeking smaller, more routine rate adjustments throughout the 2025 fiscal year:

Subsidiary	Filing Date (2025)	Filing Type	Requested Increase	Approved/Effective Date
Oklahoma Natural Gas	February	Performance-Based Rate Change	$41.5 million base rate + $2.4 million incentive	Expected Q1 2026
Kansas Gas Service	April	Gas System Reliability Surcharge	$7.2 million	Approved July 2025, Effective August 2025
Texas Gas Service	February	GRIP Filings (2 Service Areas)	$23.6 million ($15.4M + $8.2M)	Approved May 2025, Effective June 2025
Texas Gas Service	April	GRIP Filing (Rio Grande Valley)	$3.2 million	Approved $2.9 million, Effective September 2025

Compliance with extensive federal and state pipeline safety and environmental laws is mandatory

Compliance is not optional; it's a massive, non-negotiable cost driver. OGS must adhere to stringent federal regulations from the Pipeline and Hazardous Materials Safety Administration (PHMSA) and various state-level environmental protection agencies. Their capital spending plan for 2025 reflects this, with approximately $750 million in total capital investments, primarily targeted for system integrity and replacement projects.

The company's commitment to its vintage pipeline replacement program, a direct response to safety and environmental mandates, has already led to a 51% reduction in Scope 1 emissions. This puts them on track to meet their target of a 55% reduction in emissions from distribution pipelines by 2035. Plus, OGS is still managing environmental remediation at former Manufactured Gas Plant (MGP) sites in Kansas and Texas, which requires ongoing monitoring and compliance.

Regulatory lag exists between capital investment and new rate implementation

Regulatory lag-the delay between when a utility invests capital (like replacing pipe) and when it receives regulatory approval to recover that investment in customer rates-is a persistent financial headwind. This lag means the company must finance the investment upfront, incurring interest and depreciation expenses before the new rates are in effect. For the six months ended June 30, 2025, OGS reported an increase of $73.0 million in operating income from new rates, but this was partially offset by an increase of $11.9 million in depreciation and amortization expense from additional capital investment. That $11.9 million is a tangible cost of regulatory lag. The company's 2025 earnings guidance explicitly accounts for this, noting that the benefit of new rates is partially offset by higher depreciation expense from capital investments. This is why accelerated recovery mechanisms like the Gas Reliability Infrastructure Program (GRIP) in Texas are so defintely important; they help mitigate this financial drag.

Next Step: Finance and Regulatory teams need to model the expected Q1 2026 impact of the Oklahoma Natural Gas rate case approval to finalize the 2026 capital budget and financing plan.

ONE Gas, Inc. (OGS) - PESTLE Analysis: Environmental factors

The environmental landscape for ONE Gas, Inc. is defined by a clear, capital-intensive focus on emissions reduction and the strategic integration of cleaner energy sources like Renewable Natural Gas (RNG). You should see this as a necessary, long-term capital expenditure (CapEx) cycle that de-risks the business against future climate regulation.

Achieved a 51% reduction in Scope 1 emissions from distribution pipelines (since 2005).

ONE Gas has made significant, measurable progress in mitigating its direct operational emissions, primarily through its vintage pipeline replacement program. As of the company's July 2025 Sustainability Report, they have achieved a 51% reduction in Scope 1 emissions from distribution pipelines, measured against a 2005 baseline. This reduction focuses on methane leaks from the distribution network, which is the most potent greenhouse gas risk for a natural gas utility.

This is solid progress. The program is not just an environmental mandate; it's a critical system integrity investment that directly supports operational safety and reliability across their 66,735 miles of pipeline.

On track for the 2035 goal of a 55% reduction in Scope 1 distribution emissions.

The current 51% reduction puts the company firmly on track to meet its stated 2035 goal of a 55% reduction in Scope 1 emissions from distribution pipelines. This commitment is baked into their long-term capital plan, which is the key financial driver here.

Here's the quick math on the capital allocation for this kind of work:

Metric	2025 Value/Target	Context
Total 2025 Capital Investments	Approximately $750 million	Includes system integrity, replacement projects, and asset removal costs.
Targeted Emissions Reduction	55% by 2035	Reduction in Scope 1 emissions from distribution pipelines (2005 baseline).
Current Progress (as of 2025)	51% reduction achieved	Driven by the vintage pipeline replacement program.

The bulk of the $750 million in 2025 capital investments is targeted for system integrity and replacement projects, which is the mechanism for achieving this emissions goal. This consistent investment profile is what keeps the 2035 target realistic.

Ongoing environmental remediation efforts at former Manufactured Gas Plant (MGP) sites.

Like all legacy gas utilities, ONE Gas carries the financial and environmental liability of former Manufactured Gas Plant (MGP) sites. These sites, which produced gas from coal or oil before the widespread use of natural gas, require ongoing environmental remediation due to complex contamination from coal tar and other hazardous byproducts.

While a specific line item for MGP remediation within the 2025 budget is not publicly detailed, the company's total 2025 capital investments of approximately $750 million explicitly include 'asset removal costs.' MGP remediation costs are a known, material component of these asset removal and environmental accruals, and the uncertainty of these estimates is regularly cited as a risk factor in financial filings. This is a defintely a long-tail liability that investors need to monitor.

Growing commercial and industrial interest in Renewable Natural Gas (RNG) solutions.

The push for decarbonization from commercial and industrial (C&I) customers is creating a new market opportunity for ONE Gas in Renewable Natural Gas (RNG), which is pipeline-quality gas derived from organic waste. The company is actively positioning itself to meet this demand, which helps C&I customers meet their own Environmental, Social, and Governance (ESG) goals.

The potential is substantial across their service territories in Oklahoma, Kansas, and Texas:

• Identified 175 billion cubic feet (Bcf) of potential RNG feedstock across the three-state footprint.
• Engages with C&I customers seeking clean energy solutions and ways to utilize RNG.
• Had 22 projects in various stages (negotiation, design, advanced evaluation) to develop or expand RNG facilities (as of early 2022), signaling a clear pipeline of work.

This is a strategic pivot. The shift to sourcing and transporting RNG allows ONE Gas to participate in the low-carbon transition while utilizing its existing pipeline infrastructure, turning an environmental challenge into a growth opportunity for its utility divisions.