OGS - Earnings call 4 2023

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Operator

Good day, and welcome to the ONE Gas Fourth Quarter and Year-End 2023 Earnings Conference Call and Webcast. Today's conference is being recorded. At this time, I would like to turn the conference over to Chris Sighinolfi. Please go ahead, Mr. Sighinolfi.

Christopher Sighinolfi

Good morning, and thank you for joining us on our fourth quarter and year-end 2023 earnings conference call. webcast a being available will is today. later call live, replay and be This remarks, Securities happy that we questions. A prepared should our After are statements forward-looking statements Gas Act amended. Act by and or of the and Private during be the provisions ONE of considered of as reminder Act Securities of harbor to made covered this Reform XXXX, Exchange include call might expectations predictions that your take XXXX, XXXX each are the and safe Litigation the Securities projected Actual results from materially could differ in those any forward-looking statements.

factors could refer of discussion a differ, filings. to actual please For our SEC that cause results to

Chief the over and this and Senior Officer; Sid. Operating Joining are Sid I'll and Dinan, call turn the Officer. And Chief me to now call Executive McAnnally, President Curtis on President morning Vice

Robert McAnnally

Association XXX-year and Chris, over also morning, learned record of Thanks, across from affordable population economic the since access continue Gas peers. development the years growth to our amongst experienced track lowest forward we workforce, upon recognition invested as XXX celebrate that ONEOK, founding of remarkable independent year, to execution in from our American in of and consecutive XX us share. territories miles leading to This years We've that our the look customer company practices spin-off gas rate Oklahoma new migration, achieve years deployed meters, X,XXX XXX,XXX Natural deliver the to depend the history both years per in X on. focused decades benefit come. system, system our we since building by and support having installing earnings significant strong excellence customer and best With to and in We've capital of our our the safety, new natural our good Gas doubling an and our and injuries customers including of to everyone. XXXX. allowing XX and addition over enhance reliably our We've pipe in to lessons growth in for energy, service years

a to again macroeconomic deployed achievement total in year, stand-alone To delivered $XXX Last execution the We $XXX in became guidance projected challenges capital conditions. capital. when we customers as million, our communities. XX company Turning almost spent our years over ago, by we in first-year our a despite put we quarter of Xx fourth earnings posed context, to core our serve and results. and this total million

service month. million our Winter service details for did not commitment following with Storm being we as Gerri turn and most ago. With to Uri than to any customers. limited testament flowing fulfilled customers accidents also discuss Chris? affecting experienced XXXX, the severe We our the made only experienced X.X focus Storm years Storm have we've coworkers gas Chris performance it XXX teams outages or financial teams a our and to last that, to the year. to and investments within Winter vehicular colder is X faced our Our those to over I'll hours injuries. in restored of the kept Despite Uri quarter Winter during This temperatures

Christopher Sighinolfi

Thanks, Sid.

per quarter in conditions. $XX $X.XX and with or met the we macroeconomic our As for $X.XX volatile Sid income despite million and same diluted period Net was noted, net in compared $XX share for targets fourth income year XXXX. EPS the the million

$XXX per million or was compared full $XXX or the $X.XX year, diluted net million with share $X.XX in For income XXXX.

of the rates the quarter in-sourcing $X.X warmer fourth of not fruit. approximately prior earnings the quarter from we $XX.X throughout X.X% were Although year, in to begun mechanisms. Fourth material an to weather XX% year and million warmer base. quarter higher continuing service in expenses XX% weather from our efforts was customer our fourth due increase impact the trend normalization have and was our territories normal, bear last across benefits than than than quarter revenues of as O&M the our the continued new moderating million growth Fourth experienced reflect XXXX

this continue. reminder, trend per to expect a through operating And expenses XXXX. grow X% year by We as to project approximately

capital associated as depreciation plans. an market million million $X.X the was the Excluding $X.X prior compared non-qualified increase amounts to plant a reflecting in and and approximately of primarily million related of period to to investment. higher Other net increase our level $X.X year, our than increased investments of with income value due in the net same last equipment KGSS-I, benefit expense year, a higher result employee property, amortization

December, We to Excluding utilized net We from under offering expense commercial in to of the net under issue same which on decline million. in in the higher stock X amounts interest for was $X.X the KGSS-I, purposes. In December interest XXXX. and April due the related advantage approximately settled the X.X% paper general balances. forward contracts million took to than XXXX, in quarter for shares notes million senior higher million $XX common proceeds reflects $XXX we our program rates corporate repay amounts commercial our outstanding primarily of that proceeds paper period rates of of

date XXXX. March forward XX, the December the extend sale shares to maturity XXX,XXX to XXXX amended of also agreement We

As paper of XXst, had December rate average of outstanding weighted X.X%. million interest $XX at we commercial a of

Authorized increase attributable our and the year bringing $XXX is million the quarter Our $XXX fourth and year-end, capital areas. million, $X.XX rate removal will approximately of estimate for asset we $XXX million primarily XXXX. compared to to expenditures were projects base for XXXX base as extension to total for costs be in and billion The to $X.X our new was service approximately average system billion. rate integrity the of

of ended year our program billion billion our the under under We liquidity. our paper approximately with to $X.X facility. no commercial Turning $X.X borrowings and credit capacity

at we by shares stock our received million share. an Had price settlement per settled we approximately agreements all forward average year-end, for at $XX million. X.XX needs of the of common of sales have nearly XXXX end approximately also for $XXX under we year, had of year, with the addition, shares million proceeds for would of our been In of executed largely issuance end forward satisfied forward our $XXX With XXXX. At equity sale last have approximately program. equity available we net equity at-the-market the had

the removal Federal about and expenditures note per diluted to $X.XX spirited of the million. I'd that of its market predicated strong. has And outlook. guidance. we and remains $XXX of in of sheet from outlook. S&P cuts Directors the Gas and on reactive a declared income also credit the a cost balance In and rating Moody's A- stable January, $XXX AX cuts speculation $XXX potential any from magnitude dividend rate been and prior approximately rating Board $X.XX affirm stable $X rate the to XXXX. Our front, pace, million net In this to in timing affirmed earnings of share occurring lastly, per its December, earlier is affirmed debate month, share, ONE that of been an XXXX increase financial Reserve while capital million, on has quarter. And asset guidance of not engaged including our $X.XX our and

to our did down interest this While Curtis. assume happen. With come we year, that, would not pleased be rates forecast to turn would that, that see it I'll

Curtis Dinan

on Commission December. and Thank Those morning, the with an everyone. pursuant request Corporation became December, an effective reliability Services In Kansas regulatory Gas $X order rates update filing. I'll begin in issued our gas approving for million activity. good system you, an increase, Chris, Kansas to surcharge

XXXX to March our X. In of Gas Grande on $X.X Rio settlement, the XX.X% commission approved anticipate the million notified reflecting a rate an update seen rate customer for we effective capital area on activity. revenue February, connections effect all be intent increase Central reliability also filed over and program Gas upon the Texas month. X.X% in the the In in filing in June. Switching all growth XXXX, have past new January, XX,XXX June authorized Commission years. a customers year. in infrastructure Railroad equity full Valley service Texas added We finally, service case. rates to We customers increase made filing area healthy rate and requesting for gas commercial a new took Gulf based that over an the to in a this $XX.X Service continuing on XXXX, ROE a million XX file based case a We test have approximate a Service making And

secure continued We sets. solid and to new with also backlog year ended future the of a business meter again,

occurring past we the calls, continue. several is in growth development step it the states, As and all with discussed X to economic in we expect on have

dedicated increasing capital the to $XXX investment with and strong Moving operations. execution. $XXX year the XXXX approximately $XXX our safety with invested of on million worth We and in capital customer finished million system. growing our to over reliability million projects of base, We serving completed over in

again Winter we extreme brought territories. our last cold, service ice mentioned, to and Sid tested were when As Storm month snow Gerri

system we just were never hit which utilize and with example, went reliability. last storms To last resulting made Uri, invested that the system gas because Gerri In weather, our coworkers As storage we our strategically since the well. had previously reinforcements no Uri portfolio to investments enhanced extreme our diversifying of processes in them in by using gas system from well our supply performance, XX month. service disruptions. the reinforcement Elliott, along we system the units compressed stressed position natural added The and mobile lessons Mara points as an system illustrate system Austin projects, and system, significant so performed winter and with service and past the into before capacity, in our years have learned Uri performed including we've but

metro our winter centers, that day at I for the to safety established of work exceeded to sincerely the storm our want our customer care it over in were the were support Sid to and Storm volumes coworkers closing Uri. In area who customers turn those service taken in previous fact, our and now remarks. throughout they thank Austin we that during to ensure their I'll the do for Winter event. And dedication peak field

Robert McAnnally

both. In our November, and discussing response. outlook, Thank term impact is we macroeconomic would company in our the near openhandedly financial the in conditions XXXX altered X-year our and taking once you actions how again, detailed business

flexibility mentioned maintained in sheet, in filing financial As our will Kansas, to us Chris derisk noted, we've we our strong equity upcoming be a fund proceedings have about business. rates. forward diligent balance giving that case in the the appropriately spoken rate utilized executing needs regulatory are and Curtis ensure captured how we've to to and sales realities

We financial conditions to invest near-term challenges address business. opportunities to the are in by pursuing while prepared posed external

our remain fortunate region prepared services, and for our in creation we value and As will We're created where on we our desire enter a natural focused people demand stakeholders. value by the long-term operate operational are growing execution meet we XXXX, service gas, to safety, to territory.

customers. commitment questions. and Our success X,XXX by one each day. I'm now to the our this privilege a every all for possible for is us for ready to we're dedication alongside grateful coworkers, work you joining Thank serving our It's them their of morning. Operator, made of

Operator

[Operator with Instructions] from Our first question Jeffrey Securities. Mizuho comes Christopher

Christopher Jeffrey

Maybe that with case. you'll starting viewing refinancing insights maybe, have, and the Any the of asks rate Kansas special the debt just that case? some are into going early into cap you upcoming structure, how

Robert McAnnally

be recent most completed last prepared filing. was cross. on to wouldn't be Chris, you long-term the the Chris completed and we'd But that to not we mentioned, in We're certainly, details given needed will what before to mentioned week. that our earlier, go I as a you We point that all about in debt hit the next the talk items. really think filing things we signals key of we that that, for financing, prepared

again, update so preparing next and we'll a able at we're be that give file And better to point. Friday, that to

Christopher Jeffrey

the whether And the up just Got in guys season? on the on debt maybe expectations of any flow at short-term that, refinancing through on or with more are coming March, -- XXX some you note, maturity might it. looking specifically how just you shoulder then asking in kind

Christopher Sighinolfi

Chris. Chris, is Hi, this

may we the that then You're terming right. the as it based later rolling Reserve initially in pivot the true and in There's we in and the down December. that year obviously, prospect, wintertime, anticipate We the rates -- the year. paper still that we Federal were out onto move commercial through the had on by come communicated remains

if so And that of it advantage look proves to we true. take

Operator

closing have the We remarks. Instructions] hand I'll back now further to team no for [Operator questions. management

Christopher Sighinolfi

Thank you seeing ONE you in We again forward for in March. your Gas. New of in to interest many York look

provide until day. in and Our later on we details a release extends May. at close quiet when a date. period first April earnings for in great quarter Have the We'll starts our call that we books early conference

Operator

XXXX the and This quarter fourth and call webcast. year-end Gas ONE earnings conference concludes

disconnect. may now You

ONE Gas (OGS) 22 Feb 242023 Q4 Earnings call transcript