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Annual Report 2020
Resilient and Reliable Energy
For a Better Tomorrow

For a brighter tomorrow

2020 HIGHLIGHTS


Resilient & Reliable Energy

For A BETTER Tomorrow


John W Gibson

John W. Gibson

Chairman

ONE Gas, Inc.

Pierce H Norton II

Pierce H. Norton II

President and CEO

ONE Gas, Inc.

Financial Overview

We reported 2020 net income of $196 million, or $3.68 per diluted share, compared with $187 million, or $3.51 per diluted share, in 2019; and 2020 capital expenditures and asset removal costs of $512 million, compared with $465 million in 2019. Our 2020 net margin increased by $28.1 million compared with last year, which primarily reflects new rates in our service territories along with an increase in net residential customer growth. In 2021, our diluted earnings per share performance is expected to be within a range of $3.68 to $3.92 per share. Our 2021 capital expenditures and asset removal costs are

 

expected to be approximately $540 million. On Jan. 19, 2021, the ONE Gas Board of Directors increased the quarterly dividend by 4 cents per share to 58 cents per share, effective for first quarter 2021, resulting in an annualized dividend of $2.32 per share.

Our average annual dividend growth rate is expected to increase 6 percent to 8 percent between 2020 and 2025 with a targeted dividend payout ratio of 55 percent to 65 percent of net income, all subject to board approval.

2020 Financial

HIGHLIGHTS


 202020192018
Total Revenues and Net Income
Total Revenues (thousands)$1,530,268$1,652,730$1,633,731
Net Income (thousands)$196,412$186,749$172,234
Earnings and Dividends
Basic$3.70$3.53$3.27
Diluted$3.68$3.51$3.25
Dividends Per Share$2.16$2.00$1.84
Margin, Volumes and Weather
Net Margin (thousands)*$992,823$964,756$919,095
Total Volumes Delivered (Bcf)385.1396.4392.5
Actual Heating Degree Days9,24110,49010,521
Normal Heating Degree Days9,7659,8289,959
Customers and Employees
Average Number of Customers (thousands)2,2202,1942,179
Employees3,7003,6003,500
Common Stock
Market Value Per Share: Year-end Closing Price$76.77$93.57$79.60
Average Shares of Common Stock, Outstanding (thousands):
Basic53,13352,89552,693
Diluted53,37053,24053,029

*See discussion of non-GAAP financial measure here.

Committed to the

ENVIRONMENT


We believe we have a shared responsibility to care for our planet and are committed to reduce our operational emissions through four key areas: accelerated pipeline replacement; increased public awareness and damage prevention programs; leak prevention and repair strategies; and energy efficiency programs.

Introduction to One Gas

Serving Over 2 Million Customers

ONE Gas, Inc. is a 100-percent regulated natural gas utility and trades on the New York Stock Exchange under the symbol “OGS.” ONE Gas is included in the S&P MidCap 400 Index and is one of the largest natural gas utilities in the United States. We provide natural gas distribution services to approximately 2.2 million customers in Kansas, Oklahoma and Texas. We are headquartered in Tulsa, Oklahoma.

Our largest natural gas distribution markets by customer count are Kansas City, Wichita and Topeka; Oklahoma City and Tulsa; and Austin and El Paso. These seven metropolitan areas account for 70 percent of our customers. We primarily serve residential, commercial and transportation customers in all three states.

Mission & Vision


Our Mission

To deliver natural gas for a better tomorrow.

Our Vision

To be a premier natural gas distribution company, creating exceptional value for our stakeholders.

Values Collage
Values Collage

Our Core Values


Our Team of

Executives

as of April 1, 2021
Our Board of

DIRECTORS


For a Better Tomorrow

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2020 Annual Report 9.6 MB
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