| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 64 | 16.6x | 17.8x | Around median | |
Growth | 26 | -0.8% | 7.1% | Bottom tier | |
Quality | 53 | 6.2% | 4.5% | Around median | |
Safety | 41 | 4.3x | 2.6x | Around median | |
Capital Return | 46 | 3.47% | 2.12% | Around median | |
Momentum | 44 | 3.4% | 2.9% | Around median | |
Sentiment | 76 | 7 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
ONE Gas is a 100% fully regulated natural gas utility serving customers in Kansas, Oklahoma, and Texas through Kansas Gas Service, Oklahoma Natural Gas, and Texas Gas Service. The company generates revenue from regulated gas distribution rates, recovery of capital investments in the network, and growth in its customer base, industrial projects, power generation projects, and data centers. It typically allocates between 60% and 70% of its capital budget to system integrity and asset replacement, while growth capital is tied to customer needs across the three service territories.
In the second quarter of fiscal year 2026, adjusted net income was $52.1 million and adjusted earnings per share were $0.82, compared with $32.7 million and $0.54 in the corresponding period, representing growth of approximately 59% in adjusted net income and 52% in adjusted earnings per share. On a GAAP basis, earnings per share were $0.74 versus $0.53, an increase of nearly 40%, while adjusted earnings per share grew 16% during the first half of fiscal year 2026 despite weather that was 25% warmer. The data did not include a quarterly revenue or gross margin figure, but management attributed the improvement to approximately $16 million in new rate revenue and to legislative benefits in Texas that exceeded expectations.
The growth base reflects a mix of residential customers, large loads, and regulated network investment. Through July 2026, the company installed 11 thousand new meters, led by Oklahoma City and El Paso, and completed $188 million in capital projects during the second quarter of fiscal year 2026. For historical annual comparison, revenue increased from $1.8 billion in fiscal year 2021 to $2.6 billion in fiscal year 2022, and net income rose from $206.4 million to $221.7 million, while gross profit improved from $1.0 billion to $1.1 billion.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on OGS stock is “Neutral,” with an average price target of $88.33 and a relatively wide range between $80 and $96. The average falls within the 52-week range of $74.06–90.78 and near its peak, while the highest target exceeds the top of the range and the lowest target remains above its bottom; this divergence is consistent with balancing the raised fiscal year 2026 guidance against cost, regulatory, and financing risks. The data does not include a valid price-to-earnings ratio, so the available valuation is based on the target range, the Neutral consensus, and the company's ability to achieve targeted adjusted earnings per share between $4.89 and $4.95.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Adjusted net income was $52.1 million and adjusted earnings per share were $0.82, compared with $32.7 million and $0.54 in the corresponding period. The increase was supported by approximately $16 million in new rate revenue and Texas legislative benefits that exceeded expectations. The company also recorded $900 thousand in capacity release revenue in Kansas during the quarter, and net interest expense declined by $3.8 million after excluding KGSS amounts.
The company maintained the full adjusted net income range at $306–314 million and adjusted earnings per share at $4.83–4.95. However, it now expects to achieve the upper half of the range, meaning adjusted net income between $310 million and $314 million and adjusted earnings per share between $4.89 and $4.95. Confidence was based on Texas benefits, new rates, cost discipline, and the conversion of an Oklahoma data center project into a contracted project expected to enter service in the third quarter of fiscal year 2026.
As of August 5, 2026, the company had three contracted large-load projects representing approximately $15 million in additional annual revenue and $175 million in capital. The projects include a data center in Oklahoma, an advanced manufacturing facility in El Paso, and the Western Farmers gas-fired power generation project. The Western Farmers project requires a 43-mile, 24-inch pipeline, with targeted service commencement in the third quarter of fiscal year 2028. In addition, there were five opportunities in advanced discussions and 17 opportunities in early evaluation stages.
ONE Gas expects the legislation to contribute approximately $0.42 to adjusted earnings per share for fiscal year 2026, following a benefit of approximately $0.28–0.29 during the first half. The mechanism allows the deferral of depreciation and property taxes and the addition of a carrying cost on eligible capital between the asset entering service and its inclusion in rates. The impact depends on the timing and amount of capital entering service, so management expected the contribution in the third quarter of fiscal year 2026 to be smaller than the contribution in the second quarter.
Operating and maintenance expenses increased 6.6% in the second quarter of fiscal year 2026, compared with an increase exceeding 8% in the first quarter. Despite a 7% increase in line-locating activity, damages declined 6%, which management attributed to the benefits of insourcing certain work. The company also insourced 40% of the monitoring and protection function in Oklahoma and targeted completion of the process by the end of 2026, while maintaining a long-term annual expense growth expectation between 3% and 4%.
ONE Gas typically allocates between 60% and 70% of its capital budget to system integrity and asset replacement, and completed $188 million in projects in the second quarter of fiscal year 2026. It had forward equity sale agreements valued at $41.5 million, representing approximately half of its equity financing needs for the year, with the option to use its at-the-market program for the remainder. The board declared a quarterly dividend of $0.68 per share, while the plan through 2030 assumes annual dividend growth between 1% and 2% with the goal of funding a larger share of investments internally.
