2024 Financial Guidance

ONE Gas (the “Company”) expects 2024 net income to be in the range of $214 million to $231 million, with earnings per diluted share of $3.70 to $4.00. The midpoint of 2024 guidance is net income of $223 million and earnings per diluted share of $3.85. The Company’s 2024 earnings guidance includes the benefit of new rates and customer growth, offset by higher operating expenses, including employee-related and contractor costs, depreciation expense from capital investments, and interest expense due to higher interest rates. It also assumes normal weather.

Capital investments, including asset removal costs, are expected to be approximately $750 million in 2024, primarily targeted for system integrity and replacement projects. Capital investments for extensions to new customers are expected to be approximately $170 million, primarily as a result of continued growth opportunities in Texas and Oklahoma. The anticipated average rate base for 2024 is $5.55 billion, calculated consistent with utility ratemaking in each jurisdiction.

The Company expects to settle approximately 2.9 million shares of forward equity sales by year-end 2024, with anticipated net proceeds of approximately $220 million. The forward equity sales already secured for 2024 settlement are in support of the articulated five-year equity financing needs.

ONE Gas expects to achieve an average annual dividend growth rate of 1% to 2% through 2028, subject to board of directors’ approval, with a target dividend payout ratio of 55% to 65% of net income.

Guidance estimates may be impacted by the variables listed in the forward-looking statements. For additional information that could cause actual results to differ materially from such forward-looking statements, refer to ONE Gas’ Securities and Exchange Commission filings.

2024 Guidance Investor Presentation

2024 Guidance News Release