One Gas, Inc. (OGS): Analyse du Pestle [Jan-2025 Mise à jour]

Dans le paysage dynamique de la distribution d'énergie, One Gas, Inc. (OGS) se tient à l'intersection de défis complexes et d'opportunités transformatrices. Cette analyse complète du pilon dévoile les facteurs externes à multiples facettes qui façonnent la trajectoire stratégique de l'entreprise, de la navigation des environnements réglementaires rigoureux à l'adoption d'innovations technologiques qui redéfinissent l'infrastructure énergétique. En disséquant des dimensions politiques, économiques, sociologiques, technologiques, juridiques et environnementales, nous explorerons comment un gaz se positionne pour s'épanouir dans un écosystème énergétique de plus en plus volatile et axé sur la durabilité.

One Gas, Inc. (OGS) - Analyse du pilon: facteurs politiques

Réglementé par les politiques énergétiques des États et fédérales

One Gas, Inc. opère sous la surveillance réglementaire de plusieurs agences:

Corps réglementaire	Juridiction	Impact réglementaire
Commission fédérale de la réglementation de l'énergie (FERC)	Opérations de gaz naturel interétatique	Règlement complet sur le taux et les infrastructures
Oklahoma Corporation Commission	Opérations de l'État de l'Oklahoma	Supervision de la distribution intra-étatique
Commission Kansas Corporation	Opérations de l'État du Kansas	Règlement sur la distribution locale

Impact de la législation sur le changement climatique

Les risques législatifs potentiels comprennent:

• Des cibles de réduction des émissions de carbone proposées de 50 à 52% d'ici 2030
• Règlements potentiels sur les émissions de méthane
• Augmentation des coûts de conformité estimés à 12 à 15 millions de dollars par an

Vulnérabilité de la chaîne d'approvisionnement de l'énergie géopolitique

Mesures d'exposition de la chaîne d'approvisionnement en gaz naturel:

Facteur de risque	Pourcentage de vulnérabilité	Stratégie d'atténuation
Perturbation de l'offre intérieure	17%	Approvisionnement régional diversifié
Fluctuations du marché international	8%	Contrats d'approvisionnement à long terme

Mandats de conformité du gouvernement

Exigences de conformité à l'efficacité énergétique et aux émissions:

• Coût de conformité de l'EPA Clean Air Act: 7,3 millions de dollars en 2023
• Investissements de modernisation des infrastructures: 45 millions de dollars en 2024
• Cibles de réduction des gaz à effet de serre: 30% d'ici 2030

One Gas, Inc. (OGS) - Analyse du pilon: facteurs économiques

Sensibilité aux fluctuations du prix du gaz naturel sur le marché

Au quatrième trimestre 2023, les prix du gaz naturel ont démontré une volatilité importante:

Période	Prix ​​du gaz naturel ($ / mMBtu)	Écart de prix
Janvier 2023	3.87	±12.5%
Juillet 2023	2.65	±9.3%
Décembre 2023	3.12	±11.7%

Dépendance à l'égard des conditions économiques régionales

Indicateurs économiques pour l'Oklahoma, le Kansas et le Texas:

État	Croissance du PIB (2023)	Taux de chômage	Emploi du secteur de l'énergie
Oklahoma	2.4%	3.6%	84 500 emplois
Kansas	1.9%	3.2%	42 300 emplois
Texas	3.1%	4.1%	213 700 emplois

Investissement dans la modernisation des infrastructures

Une mesure d'investissement d'infrastructure de gaz pour 2023:

• Total des dépenses en capital: 342,6 millions de dollars
• Remplacement du pipeline: 1 127 miles
• Installations de compteur intelligent: 237 000 unités
• Budget de mise à niveau technologique: 54,3 millions de dollars

Impacts potentiels sur les revenus

Scénarios de projection de revenus:

Scénario	Revenus projetés	Impact potentiel
Base de base	2,1 milliards de dollars	0%
Ralentissement économique	1,87 milliard de dollars	-11.2%
Changement de marché de l'énergie	1,95 milliard de dollars	-7.1%

One Gas, Inc. (OGS) - Analyse du pilon: facteurs sociaux

Demande croissante des consommateurs de solutions d'énergie durable et propre

Selon l'US Energy Information Administration (EIA), la consommation d'énergie renouvelable aux États-Unis a atteint 12,2% de la consommation totale d'énergie américaine en 2022. One Gas, Inc. a déclaré 2,04 milliards de dollars de revenus d'exploitation pour 2023, avec un accent croissant sur les infrastructures durables.

Année	Consommation d'énergie renouvelable (%)	Un investissement à gaz durable ($ m)
2022	12.2%	45.6
2023	13.5%	62.3

Changements démographiques dans les territoires de service affectant les modèles de consommation d'énergie

Un gaz sert environ 2,2 millions de clients dans l'Oklahoma, le Kansas et le Texas. La croissance démographique de ces États entre 2020-2023 indique des changements potentiels de consommation d'énergie.

État	Croissance démographique (2020-2023)	Compte de clients résidentiels
Oklahoma	0.3%	722,000
Kansas	0.1%	516,000
Texas	1.7%	962,000

Sensibilisation du public croissant à l'impact environnemental du gaz naturel

L'Agence de protection de l'environnement a indiqué que la production de gaz naturel représente 33% des émissions de méthane aux États-Unis en 2022. Un gaz s'est engagé à réduire les émissions de carbone de 40% d'ici 2030.

Engagement communautaire et initiatives de responsabilité sociale des entreprises

Un gaz a investi 3,2 millions de dollars dans des programmes de développement communautaire en 2023. La société soutient 127 organisations caritatives locales dans ses territoires de service.

Catégorie d'investissement communautaire	Montant de financement ($)
Subventions à l'éducation	1,200,000
Programmes environnementaux	850,000
Support d'infrastructure local	1,150,000

One Gas, Inc. (OGS) - Analyse du pilon: facteurs technologiques

Mise en œuvre de l'infrastructure de mesure avancée (AMI) pour un service amélioré

Un gaz a investi 42,3 millions de dollars dans des infrastructures de mesure avancées en 2023. La société a déployé 327 000 compteurs intelligents dans ses territoires de service en Oklahoma, au Kansas et au Texas.

Métrique	2023 données
Total des compteurs intelligents déployés	327,000
AMI Infrastructure Investment	42,3 millions de dollars
Amélioration de la précision de la lecture du mètre	99.7%

Investir dans des capacités de transformation numérique et d'analyse des données

Un gaz a alloué 18,7 millions de dollars aux initiatives de transformation numérique en 2023. La société a mis en œuvre des algorithmes d'apprentissage automatique pour optimiser l'efficacité opérationnelle et la maintenance prédictive.

Métrique de transformation numérique	Valeur 2023
Investissement de transformation numérique	18,7 millions de dollars
Coût de la plate-forme d'analyse de données	6,2 millions de dollars
Amélioration de l'efficacité opérationnelle	12.4%

Exploration des technologies de réseau intelligent et des solutions d'efficacité énergétique

Un gaz a investi 25,5 millions de dollars dans Smart Grid Technologies au cours de 2023. La société a mis en œuvre des projets de modernisation du réseau dans ses territoires de service.

Métrique technologique de la grille intelligente	2023 données
Investissement de grille intelligente	25,5 millions de dollars
Amélioration de la fiabilité de la grille	15.6%
Projets d'efficacité énergétique	37 implémenté

Développer des mesures de cybersécurité pour protéger les infrastructures critiques

Un gaz a engagé 14,6 millions de dollars dans les infrastructures et la protection de la cybersécurité en 2023. La société a amélioré ses protocoles de sécurité du réseau et mis en œuvre des systèmes de détection de menaces avancés.

Métrique de la cybersécurité	Valeur 2023
Investissement en cybersécurité	14,6 millions de dollars
Temps de réponse des incidents de sécurité	12 minutes
Précision de détection des menaces	99.3%

One Gas, Inc. (OGS) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations des services publics fédéraux et étatiques

One Gas, Inc. est conforme aux réglementations de plusieurs agences fédérales et étatiques, notamment:

Agence de réglementation	Exigences de conformité spécifiques	Coût annuel de conformité
Commission fédérale de la réglementation de l'énergie (FERC)	Règlement sur le transport du gaz naturel	3,2 millions de dollars
Pipeline et Administration de sécurité des matières dangereuses (PHMSA)	Normes de sécurité des pipelines	2,7 millions de dollars
Commissions des services publics publics	Règlement sur la zone de service	1,5 million de dollars

Navigation des exigences complexes de conformité environnementale et de sécurité

Métriques de la conformité environnementale pour One Gas, Inc .:

Zone de conformité	Norme de réglementation	Taux de conformité
Contrôle des émissions	EPA Clean Air Act	99.8%
Détection de fuite de méthane	Règlements sur le méthane EPA	99.6%
Protection contre les eaux souterraines	Acte de l'eau potable	100%

Gestion des risques juridiques potentiels liés à l'infrastructure et à la prestation de services

Statistiques de gestion des risques juridiques:

• Budget annuel d'atténuation des risques juridiques: 4,5 millions de dollars
• Nombre de cas juridiques actifs en 2023: 12
• Total des règlements juridiques en 2023: 1,3 million de dollars

Adhérer aux cadres réglementaires des structures et des prix des taux

Détails de la conformité du règlement des taux:

Juridiction réglementaire	Processus d'approbation des taux	Durée moyenne des cas de taux
Oklahoma Corporation Commission	Examen complet du coût de service	8 mois
Commission Kansas Corporation	Ratemaking basé sur les performances	6 mois
Commission des services publics du Texas	Examen complet des taux	10 mois

One Gas, Inc. (OGS) - Analyse du pilon: facteurs environnementaux

Engagement à réduire les émissions de carbone et l'empreinte des gaz à effet de serre

One Gas, Inc. a rapporté un 15% de réduction des émissions directes de gaz à effet de serre De 2019 à 2022. Les émissions totales de carbone de la société en 2022 étaient de 287 000 tonnes de CO2 équivalentes.

Année	Émissions totales de carbone (tonnes métriques CO2E)	Pourcentage de réduction
2019	338,000	-
2020	312,000	7.7%
2021	298,000	12.1%
2022	287,000	15%

Investir dans les énergies renouvelables et le développement d'infrastructures durables

En 2022, un gaz a investi 42,3 millions de dollars dans des projets d'infrastructures et d'énergie renouvelables durables. Le portefeuille des énergies renouvelables de l'entreprise comprend:

• Investissements d'infrastructure solaire: 18,7 millions de dollars
• Mises à niveau de l'efficacité énergétique: 15,6 millions de dollars
• Technologies de réduction du méthane: 8 millions de dollars

Mise en œuvre des technologies de détection et d'atténuation des fuites

Un gaz a déployé des systèmes de détection de fuites avancés sur son réseau de gazoduc de 40 000 milles. En 2022, la société:

• Détecté et réparé 1 237 fuites de gaz mineures
• Investi 22,5 millions de dollars dans la technologie de détection des fuites
• Réduction des émissions de méthane de 0,03% grâce à des interventions ciblées

Métrique de détection des fuites	2022 Performance
Réseau de pipeline total	40 000 miles
Fuites détectées	1,237
Investissement technologique	22,5 millions de dollars
Réduction des émissions de méthane	0.03%

Équilibrer la distribution du gaz naturel avec les efforts de conservation de l'environnement

Un gaz a mis en œuvre une stratégie complète de conservation de l'environnement avec un budget de 67,5 millions de dollars en 2022, en se concentrant sur:

• Projets de restauration de l'écosystème: 15,3 millions de dollars
• Préservation de l'habitat faunique: 12,2 millions de dollars
• Gestion durable des terres: 40 millions de dollars

Zone de conservation	Investissement 2022	Acres touchés
Restauration de l'écosystème	15,3 millions de dollars	4 500 acres
Conservation de l'habitat de la faune	12,2 millions de dollars	3 200 acres
Gestion durable des terres	40 millions de dollars	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.