ONE Gas OGS Q4 2025 Earnings Call Transcript

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Thursday, Feb. 19, 2026 astatine 11 a.m. ET

• Chairman & Chief Executive Officer — Sid McAnnally

• Executive Vice President & Chief Financial Officer — Chris Sighinolfi

• President & Chief Operating Officer — Curtis L. Dinan

• Vice President, Investor Relations — Erin Dailey

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Sid McAnnally: I statesman our telephone contiguous by recognizing our coworkers crossed the company, for their dedication to serving our 2,300,000 customers during Winter Storm Fern. This tempest was the archetypal multi-day subfreezing lawsuit we person experienced since Winter Storm Uri successful 2021. On the highest time of the storm, we delivered implicit 3,000,000,000 cubic feet of state to our customers with nary proviso disruptions. This show is simply a testament to the enactment completed aft Uri, including the Austin strategy reinforcement which boosted our disposable wintertime highest capableness by astir 25%. Our post-Uri investments besides included a absorption connected state supply.

We accrued our retention capableness to implicit 60 Bcf, implemented strategical reinforcements crossed our system, and diversified our state supply, each enhancing reliability and reducing the interaction of terms fluctuation connected our customers. As a result, crossed our work territory, implicit 80% of the state proviso needed during the tempest was shielded from impermanent terms increases. Our full-year 2025 fiscal results were besides strong. In August, based connected a coagulated archetypal fractional show and the expected interaction of Texas House Bill 4384, we raised the midpoint of our EPS guidance to $4.37. We finished the twelvemonth afloat successful enactment with that midsummer expectation. This marks our twelfth consecutive twelvemonth of gathering oregon surpassing the midpoint of our archetypal EPS guidance.

Finally, to guarantee that the fiscal interaction of the Texas authorities is appropriately reflected successful our disclosures, we person introduced a non-GAAP accommodation to our nett income and net per share. This update adds clarity to our disclosures and helps amended exemplify the net that our regulator allows. I volition inquire Chris to sermon the details. Chris?

Chris Sighinolfi: Thanks, Sid, and bully morning, everyone. With coagulated fourth-quarter performance, we delivered full-year fiscal results squarely successful enactment with our revised guidance. 2025 nett income totaled $264,000,000 oregon $4.37 per diluted share, compared with $223,000,000 and $3.91 successful 2024.

Chris Sighinolfi: Capital expenditures totaled $760,000,000 for the year. As Sid noted, we person introduced non-GAAP adjustments to our fiscal reports and our net guidance. These adjustments connection a broad presumption of our show wrong the Texas regulatory exemplary and amended bespeak the returns allowed by our regulator. I privation to walk a infinitesimal detailing specifically what these adjustments correspond and wherefore we are introducing them now. In 2011, the Texas Railroad Commission adopted Rule 8.209 of the Texas Administrative Code. This regularisation allows earthy state utilities to defer depreciation disbursal and advertisement valorem taxes and accrue a carrying outgo connected qualifying safety-related superior expenditures betwixt the clip of task in-service and its inclusion successful rates.