ONE Gas Stock Unveils 2025 and Long-Term Investment Plans

ONE Gas OGS announced its 2025 financial goals and updated the company’s five-year growth rates. The company has been planning to strengthen its infrastructure and properly execute OGS’ business strategy, which will ultimately allow it to meet customer demands.OGS Stock’s Expectation for 2025Taking into account the benefit of new rates and customer growth, ONE Gas currently expects 2025 net income to be in the range of $254 million to $261 million, with earnings per diluted share of $4.20 to $4.32. The midpoint of 2025 guidance is $257 million in net income and $4.26 in earnings per diluted share.The midpoint of the guidance is higher than the Zacks Consensus Estimate for 2025, which is pegged at $4.21 per share.ONE Gas’ 2025 capital investment, including asset removal costs, is expected to be around $750 million and capital investments for extensions to new customers are expected to be nearly $180 million, primarily due to continued growth opportunities in Texas and Oklahoma.OGS’ Long-Term InvestmentONE Gas expects its five-year capital expenditure for the 2025-2029 period to be $4 billion or in the range of $750 million to $850 million per year. The long-term capital expenditure includes growth capital of $1 billion.Net income is expected to increase an average of 7% to 9% annually through 2027, with diluted earnings per share of 4% to 6%. Operating costs in the next five years are expected to increase nearly 4% per year down by 100 basis points from 2024 levels. The decline in operating expenses is going to boost margins of the company.Subject to the approval of its board of directors, the company expects to achieve an average annual dividend growth rate of 1% to 2% through 2029.OGS Stock’s Price PerformanceIn the past six months, shares of ONE Gas have risen 25.8% compared with the industry’s 23.4% growth. Image Source: Zacks Investment ResearchOGS’ Zacks Rank & Key PicksONE Gas currently has a Zacks Rank #3 (Hold). Two better-ranked stocks in the same industry are Atmos Energy ATO and New Jersey Resources NJR, both companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The long-term earnings (three to five years) growth of Atmos Energy is pegged at 7%. The fiscal 2025 earnings per share estimates have inched up 0.6% in the past 60 days.New Jersey Resources’ fiscal 2025 earnings per share estimates have moved up 2.4% in the past 60 days. The current dividend yield of the company is 2.42%, which is better than the S&P 500’s yield of 1.42%. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Atmos Energy Corporation (ATO): Free Stock Analysis Report NewJersey Resources Corporation (NJR): Free Stock Analysis Report ONE Gas, Inc. (OGS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks