ONE Gas, Inc. (OGS): Marketing Mix Analysis [Dec-2025 Updated]

You're looking to map out the strategy for ONE Gas, Inc. (OGS), and honestly, for a regulated utility serving about 2.3 million customers across three states, the four P's are less about competitive sales and more about operational discipline and regulatory compliance. We see the 'Product' as non-discretionary, safe gas delivery, backed by a $750 million 2025 capital plan to modernize over 43,000 miles of pipe, while the 'Price' is strictly set by commissions targeting an authorized return, often around 9.5% equity. Their 'Place' is simply their exclusive, regulated footprint, and 'Promotion' centers on safety, not selling, so you need to see the details to understand the real levers here. Keep reading for the precise, analyst-level breakdown of their market mix.

ONE Gas, Inc. (OGS) - Marketing Mix: Product

You're looking at the core offering of ONE Gas, Inc. (OGS). The product here isn't a physical widget you put on a shelf; it's the consistent delivery of a vital commodity.

The core product is safe, reliable natural gas distribution service. This service is non-discretionary, meaning your customers depend on it for essential needs like heating and, in many areas, power generation. It's the foundation of their daily operations and home comfort.

The scale of this delivery network is significant. ONE Gas, Inc. serves approximately 2.3 million utility customers across three states: Kansas, Oklahoma, and Texas. That's a massive footprint requiring constant upkeep and modernization to maintain service quality.

To ensure that reliability, infrastructure investment is a major component of the product strategy. For 2025, ONE Gas, Inc. has a capital plan estimated at approximately $750 million, primarily targeted for system integrity and replacement projects. This focus on modernization directly supports the reliability of the core product you are selling.

Here's a quick look at some key operational and investment metrics supporting the product as of late 2025:

Beyond just delivering the gas, ONE Gas, Inc. enhances its offering with programs designed to help customers manage usage and improve efficiency. This shows a commitment to the customer's total energy picture, not just the supply itself. For instance, the company continues to evaluate and expand energy efficiency and education programs for both residential and commercial customers.

You can see the tangible results of these value-added services from prior periods, which inform current strategy:

• In 2022, energy efficiency rebate programs in Oklahoma and Texas issued 102,212 rebates.
• The total dollar amount of those 2022 rebates was $15,000,939.
• The company is on track to meet its 2035 goal of a 55% reduction in Scope 1 emissions from distribution pipelines, measured from a 2005 baseline.
• They achieved approximately 24,000 new meter sets on a trailing twelve-month basis as of April 30, 2025, reflecting customer base expansion.

The product is the reliable flow of energy, backed by billions in capital investment to keep the pipes safe and modern.

ONE Gas, Inc. (OGS) - Marketing Mix: Place

ONE Gas, Inc. (OGS) executes its distribution strategy across a defined physical footprint, which is its exclusive, regulated service territory across three states. This structure dictates how the product-delivered natural gas-reaches the end-user.

The operational scope is segmented into three distinct regulated jurisdictions. Service delivery is channeled through three primary local distribution companies (LDCs), each holding significant market positions within its respective state.

The physical infrastructure supporting this distribution is substantial. ONE Gas, Inc. owns and operates approximately 65,000 miles of distribution and transmission pipelines across this territory. This network is crucial for maintaining service reliability and supporting growth.

Customer interaction is inherently decentralized due to the geographic spread, managed through a combination of physical regional service centers and digital access points. The company serves approximately 2.3 million customers across these three states. Capital investment plans reflect this distribution focus, with approximately $230 million expected for extensions to new customers in 2026, largely driven by growth in Texas and Oklahoma.

The scale of the physical assets is reflected in the anticipated rate base growth. The anticipated average rate base for 2026 is set at $6.3 billion. This infrastructure underpins the regulated monopoly structure that defines the company's place strategy.

The distribution channels are defined by the regulated mandates, meaning access points are determined by the authorized service areas. You can see the concentration of service below:

• Oklahoma Natural Gas is the largest distributor in Oklahoma.
• Kansas Gas Service is the largest distributor in Kansas.
• Texas Gas Service is the third largest distributor in Texas.
• The company is focused on system integrity and replacement projects.

For instance, capital investments, including asset removal costs, are expected to be approximately $800 million in 2026, primarily targeted for system integrity and replacement projects. Finance: draft 13-week cash view by Friday.

ONE Gas, Inc. (OGS) - Marketing Mix: Promotion

Promotion is primarily focused on safety awareness and public education, not sales, due to its monopoly status.

ONE Gas, Inc. serves over 2.3 million customers across Kansas, Oklahoma, and Texas. The company's communication strategy heavily emphasizes its commitment to system integrity and public well-being, which is central to maintaining its regulated status.

Key messaging centers on pipeline safety, leak detection, and carbon monoxide prevention.

The company has achieved industry recognition for its safety focus, receiving an American Gas Association Safety Achievement Award for employee safety for the eighth consecutive year as of May 2025. This recognition is based on the Days Away, Restricted or Transferred (DART) rate. Furthermore, ONE Gas, Inc. reports a 51% reduction in Scope 1 emissions from distribution pipelines, keeping it on track for its 2035 goal of a 55% reduction from a 2005 baseline.

Customer outreach promotes energy efficiency rebates and low-income assistance programs.

Community support figures from the 2024 Sustainability Report show tangible investment outside of core operations. The ONE Gas Foundation, corporate sponsorships, and community giving totaled $3.3 million in 2024. Employees and families contributed over 10,000 volunteer hours in 2024. Specific program data, though from 2022, shows the scale of energy efficiency promotion:

• Energy efficiency rebates issued in Oklahoma and Texas: 102,212 in 2022.
• Total value of 2022 energy efficiency rebates: $15,000,939.
• NGV rebates provided since 2015: More than 250.

Investor relations activities are the main external communication channel for financial stakeholders.

Investor communication in late 2025 was active, with executives participating in multiple conferences between December 8-10, 2025. Financial updates are a key promotional tool for this audience. For instance, on December 1, 2025, ONE Gas, Inc. issued 2026 guidance and raised its long-term diluted earnings per share growth rate. The company's 2025 financial performance updates provided specific guidance ranges:

• Q3 2025 Net Income: $26.5 million, or $0.44 per diluted share.
• Year-to-date 2025 Net Income: $177.9 million, or $2.94 per diluted share.
• Raised 2025 Diluted EPS Guidance Midpoint (as of August 2025): $4.37.

Digital engagement handles billing, outage reporting, and service requests.

The company's website, onegas.com, serves as the primary digital hub for customer service functions and investor information. While specific digital engagement statistics like website traffic or app usage are not available, the platform supports critical customer interactions. The company's 2025 capital investment plan, which supports system reliability, was approximately $750 million.

The expected 2025 capital investments, which underpin service reliability, were budgeted at approximately $750 million, including asset removal costs.

ONE Gas, Inc. (OGS) - Marketing Mix: Price

Pricing for ONE Gas, Inc. (OGS) is fundamentally a function of regulatory approval, not purely market forces. This utility structure means that the amount customers pay is determined by state regulatory commissions, such as the Oklahoma Corporation Commission and the Kansas Corporation Commission, for their respective service territories.

Rates are established through a regulated rate-of-return model applied to an approved rate base. This model allows ONE Gas, Inc. (OGS) to recover its prudently incurred operating costs, income taxes, and earn an allowed return on its invested capital. Near-term pricing risk centers on the timing and outcome of ongoing rate case filings designed to secure recovery for capital expenditures and earn the authorized return on equity, which is typically around 9.5%.

The customer bill is a composite of two primary components: the commodity cost, which is the actual cost of the natural gas purchased, and the regulated delivery charge, which covers the infrastructure and return on investment. To pass through fluctuating commodity costs directly to customers, ONE Gas, Inc. (OGS) utilizes mechanisms like the Gas Cost Adjustment (GCA).

The delivery charge component is directly influenced by recent regulatory actions to update the approved rate base and authorized return. For instance, ONE Gas, Inc. (OGS) projected an average rate base of $5.8 billion for 2025, with investments planned to support an average rate base of $6.3 billion in 2026. The impact of these investments on customer pricing is seen through recent rate case outcomes and filings.

You can see the magnitude of recent regulatory activity that shapes the delivery charge component:

• The anticipated average rate base for 2025 was estimated at $5.8 billion.
• Capital investments for 2025 were estimated at approximately $750 million.
• A Texas Gas Service rate case filed in June 2025 requested a $41.1 million revenue increase, based on a 10.4% return on equity.
• The Texas Railroad Commission (RRC) approved a partial increase of $2.9 million in August 2025, effective September 2025.
• Kansas Gas Service secured approval for a $7.2 million increase related to its Gas System Reliability Surcharge in July 2025.
• Oklahoma Natural Gas filed for a requested $41.5 million base rate revenue increase in February 2025.

The effect of new rates is material to reported performance, as evidenced by the first quarter of 2025 results, which showed an increase of $51.9 million in operating income primarily from new rates.

Here is a summary of the key financial figures tied to the rate base and recent regulatory recovery efforts:

Financing options and credit terms are managed through capital market activities, such as debt issuances and forward sale agreements for equity, which support the capital expenditure plan necessary to maintain and grow the asset base underpinning the regulated rates. For example, the company had outstanding forward sale agreements covering approximately 2.9 million shares at an average price of about $78 per share as of late 2025, with expectations to settle approximately $205 million at year-end 2025.