One Gas Logo

Annual Report 2021
Creating Value
For a Better Tomorrow

2021 HIGHLIGHTS


Safety

Recognized for Safety Excellence

Ranks in the top quartile for similar-sized local distribution companies for all three personal safety metrics as recognized by the AGA

Safety

Capital Investments

Opened State-of-the-Art Training Center

17,000 sq feet of hands-on simulation training

Capital Investments

Supporting Energy Choice

Supported "Energy Choice" legislation in Kansas, Oklahoma and Texas which passed in all three states.

Supporting Energy Choice

Renewable Natural Gas (RNG)

22 active projects in various stages of development

Renewable Natural Gas (RNG)

Renewable Natural Gas (RNG)

Authorized to spend $5 million annually in Oklahoma to purchase RNG as part of our supply portfolio.

Renewable Natural Gas (RNG)

Community Investment

Supporting Our Communities

Contributed $3.26 million in ONE Gas Foundation grants and community giving

Community Investment

Community Investment

Giving for Greenwood

Funded initiatives that observed the 1921 Tulsa Race Massacre Centennial

Community Investment

Expanded Focus on Sustanability

Established the ONE Gas Environmental, Social and Governance (ESG) Steering Committee

Expanded Focus on Sustanability
Creating Value

For A BETTER Tomorrow


To Our Fellow Shareholders:

In 2021, ONE Gas continued to execute on its mission to deliver natural gas for a better tomorrow. Our mission is forward-looking and future-focused, building on our legacy of safely delivering reliable and affordable natural gas to our 2.2 million customers.

Planning for our future includes anticipating opportunities and building on our strengths. Those strengths include a dedicated workforce of 3,600 talented individuals and a reliable and resilient energy system serving a vibrant, growing service territory.

Our business strategy as a 100% regulated natural gas distribution company guides our decisions and focuses on creating value for our stakeholders. To that end, we’re pleased to present the results of our work in this year’s annual report.


Read More

Financial Overview

We reported 2021 net income of $206 million, or $3.85 per diluted share, compared with $196 million, or $3.68 per diluted share, in 2020; and 2021 capital expenditures and asset removal costs of $544 million, compared with $512 million in 2020. Our 2021 operating income increased $6.8 million compared with last year, which primarily is reflective of new rates along with higher revenues due to an increase in our average residential customer count in our service territories.

In 2022, our diluted earnings per share performance is expected to be within a range of $3.96 to $4.20 per

 

share. Our 2022 capital expenditures and asset removal costs are expected to be approximately $650 million.

On Jan. 18, 2022, the ONE Gas Board of Directors increased the quarterly dividend by 4 cents per shareto 62 cents per share, effective for first-quarter 2022, resulting in an annualized dividend of $2.48 per share.

Our average annual dividend growth rate is expected to increase 6% to 8% through 2026 with a targeted dividend payout ratio of 55% to 65% of net income, all subject to board approval.

2021 Financial

HIGHLIGHTS


 202120202019
Total Revenues and Net Income
Total Revenues (thousands)$1,808,597$1,530,268$1,652,730
Net Income (thousands)$206,434$196,412$186,749
Earnings and Dividends
Basic$3.85$3.70$3.53
Diluted$3.85$3.68$3.51
Dividends Per Share$2.32$2.16$2.00
Volumes and Weather
Total Volumes Delivered (Bcf)387.8385.1396.4
Actual Heating Degree Days9,0259,24110,490
Normal Heating Degree Days9,7179,7659,828
Customers and Employees
Average Number of Customers2,241,0002,220,0002,194,000
Employees3,6503,6503,650
Common Stock
Market Value Per Share: Year-end Closing Price$77.59$76.77$93.57
Average Shares of Common Stock, Outstanding (thousands):
Basic53,57553,13352,895
Diluted53,67453,37053,240

*See discussion of non-GAAP financial measure here.

About Us

Serving Over 2 Million Customers

ONE Gas, Inc. is a 100% 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.

kansas market map
Kansas One Gas Logo72% market share, the largest in Kansas.

Mission, Vision & Strategy


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.

Strategy

Safe and reliable energy | High-performing workforce | Capital demand growth | Energy transition solutions | Customer affordability.

Values Collage
Values Collage

Our Core Values


Safety Icon

Safety

We are committed to operating safely and in an environmentally responsible manner.

Ethics Icon

Ethics

We are accountable to the highest ethical standards and are committed to compliance. Honesty, trust and integrity matter.

Inclusion & Diversity Icon

Inclusion & Diversity

We embrace an inclusive and diverse culture that encourages collaboration. Every employee makes a difference and contributes to our success.

Service Icon

Service

We provide exceptional service and make continuous improvements in our pursuit of excellence.

Value Icon

Value

We create value for all stakeholders, including our customers, employees, investors and communities.

Our Team of

Executives

as of April 1, 2022
Robert S. McAnnally, 58

Robert S. McAnnally, 58

President and Chief Executive Officer

Curtis L. Dinan, 54

Curtis L. Dinan, 54

Senior Vice President and Chief Operating Officer

W. Kent Shortridge, 55

W. Kent Shortridge, 55

Senior Vice President, Operations and Customer Service

Caron A. Lawhorn, 61

Caron A. Lawhorn, 61

Senior Vice President and Chief Financial Officer

Joseph L. McCormick, 62

Joseph L. McCormick, 62

Senior Vice President, General Counsel and Assistant Secretary

Mark. A. Bender, 57

Mark. A. Bender, 57

Senior Vice President, Administration and Chief Information Officer

Julie A. White, 51

Julie A. White, 51

Vice President, Communications, and Inclusion & Diversity

Our Board of

DIRECTORS


Michael G. Hutchinson

Michael G. Hutchinson

Retired Partner | Deloitte & Touche

John W. Gibson

John W. Gibson

Chairman | ONE Gas, Inc.

Tracy E. Hart

Tracy E. Hart

President and Chief Executive Officer | Tarlton Corporation

Pattye L. Moore

Pattye L. Moore

Retired Board Chair and Interim Chief Executive Officer | Red Robin Gourmet Burgers

Robert S. McAnnally

Robert S. McAnnally

President and Chief Executive Officer | ONE Gas, Inc.

Robert B. Evans

Robert B. Evans

Retired President and Chief Executive Officer | Duke Energy Americas

Eduardo A. Rodriguez

Eduardo A. Rodriguez

President | Strategic Communication Consulting Group

Douglas H. Yaeger

Douglas H. Yaeger

Retired Chairman, President and Chief Executive Officer | The Laclede Group, Inc. (Spire, Inc.)

For a Better Tomorrow

Download the Full Report

2021 Annual Report 9.6 MB
2021 Annual Report
( 9.6 MB )
Download Report
Kansas One Gas Logo
Oklahoma One Gas Logo
Texas One Gas Logo