One Gas, Inc. (OGS): Análise de Pestle [Jan-2025 Atualizado]

No cenário dinâmico da distribuição de energia, a One Gas, Inc. (OGS) está na interseção de desafios complexos e oportunidades transformadoras. Esta análise abrangente de pestles revela os fatores externos multifacetados que moldam a trajetória estratégica da empresa, desde a navegação de ambientes regulatórios rigorosos até a adoção de inovações tecnológicas que redefine a infraestrutura energética. Ao dissecar dimensões políticas, econômicas, sociológicas, tecnológicas, legais e ambientais, exploraremos como um gás está se posicionando para prosperar em um ecossistema de energia cada vez mais volátil e orientado a sustentabilidade.

One Gas, Inc. (OGS) - Análise de Pestle: Fatores Políticos

Regulamentado por políticas de energia estaduais e federais

O One Gas, Inc. opera sob a supervisão regulatória de várias agências:

Órgão regulatório	Jurisdição	Impacto regulatório
Comissão Federal de Regulamentação de Energia (FERC)	Operações interestaduais de gás natural	Regulação abrangente de taxa e infraestrutura
Comissão da Corporação de Oklahoma	Operações do Estado de Oklahoma	Supervisão intra -distribuída da distribuição
Comissão da Corporação de Kansas	Operações do Estado do Kansas	Regulamento de distribuição local

Impacto da legislação sobre mudanças climáticas

Os riscos legislativos potenciais incluem:

• Alvos de redução de emissões de carbono propostas de 50-52% até 2030
• Regulamentos potenciais de emissões de metano
• Custos de conformidade aumentados estimados em US $ 12 a 15 milhões anualmente

Vulnerabilidade da cadeia de suprimentos de energia geopolítica

Métricas de exposição à cadeia de suprimentos de gás natural:

Fator de risco	Porcentagem de vulnerabilidade	Estratégia de mitigação
Interrupção da oferta doméstica	17%	Fornecimento regional diversificado
Flutuações do mercado internacional	8%	Contratos de fornecimento de longo prazo

Mandados de conformidade do governo

Requisitos de conformidade com eficiência energética e redução de emissões:

• Custos de conformidade da Lei do Ar Limpo da EPA: US $ 7,3 milhões em 2023
• Investimentos de modernização de infraestrutura: US $ 45 milhões em 2024
• Alvos de redução de gases de efeito estufa: 30% até 2030

One Gas, Inc. (OGS) - Análise de Pestle: Fatores Econômicos

Sensibilidade às flutuações dos preços do gás natural no mercado

A partir do quarto trimestre 2023, os preços do gás natural demonstraram volatilidade significativa:

Período	Preço do gás natural ($/MMBTU)	Variação de preço
Janeiro de 2023	3.87	±12.5%
Julho de 2023	2.65	±9.3%
Dezembro de 2023	3.12	±11.7%

Dependência de condições econômicas regionais

Indicadores econômicos para Oklahoma, Kansas e Texas:

Estado	Crescimento do PIB (2023)	Taxa de desemprego	Emprego do setor energético
Oklahoma	2.4%	3.6%	84.500 empregos
Kansas	1.9%	3.2%	42.300 empregos
Texas	3.1%	4.1%	213.700 empregos

Investimento em modernização de infraestrutura

Uma métricas de investimento em infraestrutura de gás para 2023:

• Despesas totais de capital: US $ 342,6 milhões
• Substituição de oleoduto: 1.127 milhas
• Instalações de medidores inteligentes: 237.000 unidades
• Orçamento de atualização da tecnologia: US $ 54,3 milhões

Possíveis impactos de receita

Cenários de projeção de receita:

Cenário	Receita projetada	Impacto potencial
Linha de base	US $ 2,1 bilhões	0%
Crise econômica	US $ 1,87 bilhão	-11.2%
Mudança de mercado de energia	US $ 1,95 bilhão	-7.1%

One Gas, Inc. (OGS) - Análise de Pestle: Fatores sociais

Crescente demanda do consumidor por soluções de energia sustentável e limpa

De acordo com a Administração de Informações sobre Energia dos EUA (AIA), o consumo de energia renovável nos Estados Unidos atingiu 12,2% do consumo total de energia dos EUA em 2022. O One Gas, Inc. registrou US $ 2,04 bilhões em receitas operacionais para 2023, com o aumento do foco na infraestrutura sustentável.

Ano	Consumo de energia renovável (%)	Um investimento sustentável de gás ($ m)
2022	12.2%	45.6
2023	13.5%	62.3

Mudanças demográficas nos territórios de serviço que afetam padrões de consumo de energia

Um gás atende a aproximadamente 2,2 milhões de clientes em Oklahoma, Kansas e Texas. O crescimento populacional nesses estados entre 2020-2023 indica mudanças de consumo de energia potencial.

Estado	Crescimento populacional (2020-2023)	Contagem de clientes residenciais
Oklahoma	0.3%	722,000
Kansas	0.1%	516,000
Texas	1.7%	962,000

Aumentando a conscientização pública sobre o impacto ambiental do gás natural

A Agência de Proteção Ambiental relatou que a produção de gás natural é responsável por 33% das emissões de metano nos Estados Unidos em 2022. Um gás se comprometeu a reduzir as emissões de carbono em 40% até 2030.

Iniciativas de envolvimento da comunidade e responsabilidade social corporativa

Um gás investiu US $ 3,2 milhões em programas de desenvolvimento comunitário durante 2023. A empresa suporta 127 organizações de caridade locais em seus territórios de serviço.

Categoria de investimento comunitário	Valor de financiamento ($)
Subsídios de educação	1,200,000
Programas ambientais	850,000
Suporte de infraestrutura local	1,150,000

One Gas, Inc. (OGS) - Análise de Pestle: Fatores tecnológicos

Implementando a infraestrutura de medição avançada (AMI) para um serviço aprimorado

Um gás investiu US $ 42,3 milhões em infraestrutura avançada de medição em 2023. A empresa implantou 327.000 medidores inteligentes em seus territórios de serviço em Oklahoma, Kansas e Texas.

Métrica	2023 dados
Medidores inteligentes totais implantados	327,000
Investimento de infraestrutura da AMI	US $ 42,3 milhões
Melhoria da precisão da leitura do medidor	99.7%

Investir em recursos de transformação digital e análise de dados

Um gás alocou US $ 18,7 milhões para iniciativas de transformação digital em 2023. A Companhia implementou algoritmos de aprendizado de máquina para otimizar a eficiência operacional e a manutenção preditiva.

Métrica de transformação digital	2023 valor
Investimento de transformação digital	US $ 18,7 milhões
Custo da plataforma de análise de dados	US $ 6,2 milhões
Melhoria da eficiência operacional	12.4%

Explorando tecnologias de grade inteligente e soluções de eficiência energética

Um gás investiu US $ 25,5 milhões em tecnologias de grade inteligente durante 2023. A Companhia implementou projetos de modernização de grade em seus territórios de serviço.

Métrica de tecnologia de grade inteligente	2023 dados
Investimento de grade inteligente	US $ 25,5 milhões
Melhoria de confiabilidade da grade	15.6%
Projetos de eficiência energética	37 implementado

Desenvolvimento de medidas de segurança cibernética para proteger a infraestrutura crítica

Um gás comprometeu US $ 14,6 milhões à infraestrutura e proteção de segurança cibernética em 2023. A Companhia aprimorou seus protocolos de segurança de rede e implementou sistemas avançados de detecção de ameaças.

Métrica de segurança cibernética	2023 valor
Investimento de segurança cibernética	US $ 14,6 milhões
Tempo de resposta a incidentes de segurança	12 minutos
Precisão da detecção de ameaças	99.3%

One Gas, Inc. (OGS) - Análise de Pestle: Fatores Legais

Conformidade com os regulamentos federais e estaduais

A One Gas, Inc. está em conformidade com os regulamentos de várias agências federais e estaduais, incluindo:

Agência regulatória	Requisitos específicos de conformidade	Custo anual de conformidade
Comissão Federal de Regulamentação de Energia (FERC)	Regulamentos de transporte de gás natural	US $ 3,2 milhões
Administração de segurança de oleodutos e materiais perigosos (PHMSA)	Padrões de segurança de pipeline	US $ 2,7 milhões
Comissões de utilidade pública estaduais	Regulamentos da área de serviço	US $ 1,5 milhão

Navegando requisitos complexos de conformidade ambiental e de segurança

Métricas de conformidade ambiental para One Gas, Inc.:

Área de conformidade	Padrão regulatório	Taxa de conformidade
Controle de emissões	Lei do Ar Limpo da EPA	99.8%
Detecção de vazamento de metano	Regulamentos de metano da EPA	99.6%
Proteção das águas subterrâneas	Lei de água potável segura	100%

Gerenciando riscos legais potenciais relacionados à infraestrutura e prestação de serviços

Estatísticas de gerenciamento de riscos legais:

• Orçamento anual de mitigação de risco legal: US $ 4,5 milhões
• Número de casos legais ativos em 2023: 12
• Acordos legais totais em 2023: US $ 1,3 milhão

Aderir a estruturas regulatórias por estruturas de taxas e preços

Detalhes da conformidade da regulamentação da taxa:

Jurisdição regulatória	Processo de aprovação da taxa	Duração média do caso de taxa
Comissão da Corporação de Oklahoma	Revisão total de custo de serviço	8 meses
Comissão da Corporação de Kansas	Fabricação de rate-se baseada em desempenho	6 meses
Comissão de Utilidade Pública do Texas	Revisão abrangente da taxa	10 meses

One Gas, Inc. (OGS) - Análise de Pestle: Fatores Ambientais

Compromisso em reduzir as emissões de carbono e a pegada de gases de efeito estufa

One Gas, Inc. relatou um Redução de 15% nas emissões diretas de gases de efeito estufa De 2019 a 2022. As emissões totais de carbono da Companhia em 2022 foram 287.000 toneladas métricas equivalentes.

Ano	Emissões totais de carbono (toneladas métricas)	Porcentagem de redução
2019	338,000	-
2020	312,000	7.7%
2021	298,000	12.1%
2022	287,000	15%

Investindo em energia renovável e desenvolvimento de infraestrutura sustentável

Em 2022, um gás investiu US $ 42,3 milhões em infraestrutura sustentável e projetos de energia renovável. O portfólio de energia renovável da empresa inclui:

• Investimentos de infraestrutura solar: US $ 18,7 milhões
• Atualizações de eficiência energética: US $ 15,6 milhões
• Tecnologias de redução de metano: US $ 8 milhões

Implementando tecnologias de detecção e mitigação de vazamentos

Um gás implantou sistemas avançados de detecção de vazamentos em sua rede de gasodutos de 40.000 milhas. Em 2022, a empresa:

• Detectou e reparou 1.237 vazamentos menores a gás
• Investiu US $ 22,5 milhões em tecnologia de detecção de vazamento
• Emissões reduzidas de metano em 0,03% através de intervenções direcionadas

Métrica de detecção de vazamento	2022 Performance
Rede total de pipeline	40.000 milhas
Vazamentos detectados	1,237
Investimento em tecnologia	US $ 22,5 milhões
Redução de emissão de metano	0.03%

Equilibrando a distribuição de gás natural com os esforços de conservação ambiental

Um gás implementou uma estratégia abrangente de conservação ambiental com um orçamento de US $ 67,5 milhões em 2022, com foco em:

• Projetos de restauração do ecossistema: US $ 15,3 milhões
• Preservação do habitat da vida selvagem: US $ 12,2 milhões
• Gerenciamento sustentável da terra: US $ 40 milhões

Área de conservação	Investimento 2022	Acres impactados
Restauração do ecossistema	US $ 15,3 milhões	4.500 acres
Preservação do habitat da vida selvagem	US $ 12,2 milhões	3.200 acres
Gerenciamento sustentável da terra	US $ 40 milhões	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.