TULSA, Okla. - ONE Gas, Inc. (NYSE: NYSE:OGS), a regulated natural gas utility, announced today that its board of directors has declared a quarterly dividend of 66 cents per share. This dividend is payable on August 30, 2024, to shareholders of record as of the close of business on August 14, 2024.
The company had previously indicated that it anticipated a quarterly dividend of 66 cents per share for the year 2024, which would amount to $2.64 annually. ONE Gas also projected an average annual dividend growth rate of 1% to 2% through 2028. The targeted dividend payout ratio is set to be approximately 55% to 65% of the company's net income, subject to approval by the board of directors.
ONE Gas is a significant player in the natural gas utility industry in the United States and is listed on the New York Stock Exchange. It is part of the S&P MidCap 400 Index. With its headquarters in Tulsa, Oklahoma, ONE Gas serves over 2.3 million customers across Kansas, Oklahoma, and Texas through its divisions Kansas Gas Service, Oklahoma Natural Gas, and Texas Gas Service.
The company's strategy has been to provide reliable and affordable energy, and it stands as the largest natural gas distributor in both Kansas and Oklahoma, and the third largest in Texas, by customer count.
This announcement is based on a press release statement from ONE Gas, Inc. The information provided does not include any marketing or promotional content and is intended for factual reporting only.
In other recent news, ONE Gas, Inc. has made significant strides in its financial operations. The natural gas distributor expanded its credit facility by $75 million, raising the total commitments to $1.275 billion, with the addition of Regions Bank as a lender, according to an SEC filing. This move comes as ONE Gas continues to manage its capital amidst evolving energy market dynamics.
In terms of performance, ONE Gas reported a strong first quarter in 2024 with a net income of $99 million. This positive outcome was achieved despite a 5% increase in operations and maintenance expenses, with revenue growth driven by new rates and customer growth.
On the analyst front, Mizuho revised its price target for ONE Gas to $65.00, up from $64.00, while maintaining a Neutral stance on the company's stock. The firm recognizes the potential benefits of higher capital costs bolstering return on equity in upcoming rate case decisions, despite the challenges posed by higher short-term rates.
These recent developments provide investors with a clearer picture of ONE Gas's current financial standing and future prospects, as the company remains on track to hit the midpoint of its 2024 financial guidance.
InvestingPro Insights
ONE Gas, Inc. (NYSE: OGS) continues to demonstrate a commitment to shareholder returns, as evidenced by its latest dividend declaration. Key financial metrics from InvestingPro show a market capitalization of $3.74 billion, with a Price/Earnings (P/E) ratio of 16.26, reflecting investor perceptions of the company's earnings potential. Despite a challenging environment, the company has maintained a Gross Profit Margin of 34.89% over the last twelve months as of Q1 2024.
InvestingPro Tips reveal that ONE Gas operates with a significant debt burden and short-term obligations that exceed its liquid assets. However, the company has a track record of raising its dividend for 10 consecutive years, which aligns with its recent dividend announcement and future projections. This consistency in dividend growth, coupled with analyst predictions of profitability for the year, suggests a stable financial outlook for ONE Gas.
Investors may find additional insights and tips on ONE Gas at https://www.investing.com/pro/OGS, including 3 more InvestingPro Tips to help evaluate the company's financial health and investment potential. Remember to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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