ONE Gas rides on rising natural gas demand, new rates and steady investments to boost revenue growth and long-term financial performance outlook.
ONE Gas OGS gains from rising natural gas demand, a growing customer base and new rates that boost the company’s financial performance. Debt management and systematic capital investment help strengthen operational stability, enhance efficiency and support sustained long-term financial growth.
This Zacks Rank #3 (Hold) company faces risks related to strong competition from other clean energy sources and stringent regulations.
ONE Gas benefits from rising natural gas demand. Customer additions are expected to continue in the coming years, as improving efficiency through regular investments helps keep costs affordable, thereby attracting more customers. During the fourth quarter of 2025, OGS served 2,290,000 customers, up 0.57% year over year.
The company’s systematic capital investments in infrastructure development help maintain service reliability while enhancing operational efficiency and overall financial performance. In 2026, state-wise, ONE Gas aims to invest $311 million, $313 million and $176 million in Oklahoma, Texas and Kansas, respectively. The company expects earnings per share (EPS) to grow 5-7% annually through 2030.
OGS uses lower debt than its peers and maintains sufficient liquidity to meet its ongoing operational and short-term obligations efficiently. The company’s debt-to-capital ratio currently stands at 49.51% compared with its industry level of 55.08%. This enables efficient capital funding with minimal borrowing, supporting strong financial flexibility and stability.
The natural gas industry is highly competitive, and the company has to compete against many competitors to retain customers and prove the reliability of its services. Natural gas competes with electricity for water, space heating and other energy-related needs. A fall in the price of electricity or other energy products will make natural gas less attractive to customers, thereby reducing its demand and hurting the company’s prospects.
Restrictions or regulations on shale natural gas production and wastewater disposal could result in an upward movement in natural-gas prices. This might lead to the migration of customers to alternative, cheaper sources of fuel, thereby impacting business and financial conditions.
In the past three months, ONE Gas shares have rallied 9.8% compared with the industry’s 6.2% growth.
Image Source: Zacks Investment Research
Some better-ranked stocks in the same sector include Chesapeake Utilities CPK, Northwest Natural NWN and CenterPoint Energy $CNP CNP. ALL stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Currently, CPK, NWN and CNP’s dividend yields are 2.20%, 3.73% and 2.17%, respectively.
The Zacks Consensus Estimate for Chesapeake Utilities, Northwest Natural and CenterPoint Energy 2026 EPS is pegged at $6.51, $3.05 and $1.91, suggesting year-over-year growth of 8.32%,4.10% and 8.52%, respectively.
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X $TWTR Imaging which shot up +129.6% in little more than 9 months.
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CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report
Chesapeake Utilities Corporation (CPK): Free Stock Analysis Report
Northwest Natural Gas Company (NWN): Free Stock Analysis Report
ONE Gas, Inc. (OGS): Free Stock Analysis Report
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