ONE Gas, Inc. (NYSE: OGS)

ONE Gas, Inc. operates as a regulated public utility delivering natural gas to residential, commercial and transportation customers in Oklahoma, Kansas and Texas. The company is subject to oversight by the Oklahoma Corporation Commission, the Kansas Corporation Commission and the Railroad Commission of Texas. It provides transportation services that move gas through its pipeline system for third parties. ONE Gas, Inc. earns revenue from natural gas sales, transportation revenues, securitization customer charges and other miscellaneous service charges. Its operations are governed by rate regulated frameworks that allow recovery of costs and provide a return on investment. The company focuses on maintaining safe, reliable and efficient service through ongoing capital investments in pipeline integrity and system expansion.

ONE Gas, Inc. generates revenue primarily from the sale and delivery of natural gas to its customers. For the 9 months ended September 30, 2025, natural gas sales amounted to $1,567.2 million, transportation revenues totaled $105.8 million, securitization customer charges reached $36.0 million and other revenues were $29.1 million, resulting in total revenues of $1,738.1 million. Natural gas sales include fixed charges that do not vary with usage and variable charges that fluctuate with delivered volumes and weather normalization effects. Transportation revenues arise from contracts with customers for moving gas through the company's pipeline network. Securitization customer charges relate to the financing order approved by the Kansas Corporation Commission for recovery of extraordinary costs from Winter Storm Uri. Other revenues consist mainly of miscellaneous service charges established by tariffs and regulatory mechanisms. The company serves residential, commercial, industrial and transportation customer classes across its service territories.

The company operates through the following segments.

• Regulated public utilities: This segment delivers natural gas to residential, commercial and transportation customers and includes all regulated operations in Oklahoma, Kansas and Texas.

ONE Gas, Inc. holds a stable position in the natural gas distribution industry as a rate regulated utility operating in Oklahoma, Kansas and Texas. The company benefits from a large residential customer base that provides predictable demand and a fixed charge component of revenue that stabilizes cash flow. Its competitive advantages include regulatory mechanisms that permit recovery of prudently incurred costs and reduce earnings lag between rate cases. ONE Gas, Inc. also leverages its scale and integrated operations across three states to achieve operational efficiencies. The company faces competition from alternative energy sources such as electricity, solar, wind and geothermal energy, which may affect long term demand for natural gas. Additionally, it contends with other gas utilities and energy providers in its service areas.

ONE Gas, Inc. serves residential, commercial, industrial and transportation customers in Oklahoma, Kansas and Texas. For the 9 months ended September 30, 2025, the average number of residential customers was 849,000 in Oklahoma, 597,000 in Kansas and 673,000 in Texas, totaling approximately 2,119,000. Commercial and industrial customer counts averaged 77,000 in Oklahoma, 51,000 in Kansas and 35,000 in Texas, summing to about 163,000. Transportation customer counts averaged 5,000 in Oklahoma, 5,000 in Kansas and 1,000 in Texas, for a total of 11,000. Overall, the company had an average of roughly 2,296,000 customers during the period.