TULSA, Okla. – ONE Gas, Inc. (NYSE: NYSE: ), the regulated utility, announced today that its board of directors has declared a monthly dividend of 66 cents per share. This dividend is payable on August 30, 2024, to shareholders of record at the close of business on August 14, 2024.
The company has paid 66 cents per share per month through 2024, and through 2024 it pays a dividend of $2.64 per year. ONE Gas also projects an average annual dividend growth rate of 1% to 2% until 2028. The targeted dividend payout ratio is approximately 55% to 65% of the company’s net income, which must be approved 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. Headquartered in Tulsa, Oklahoma, ONE Gas serves more than 2.3 million customers in Kansas, Oklahoma, and Texas through its Kansas Gas Service, Oklahoma Natural Gas, and Texas Gas Service divisions.
The company’s strategy is to provide reliable and affordable energy, and it is the largest distributor of natural gas in Kansas and Oklahoma, and the third largest in Texas, by number of customers.
This announcement is based on a press release statement from ONE Gas, Inc. The information provided does not include marketing or promotional content and is for factual reporting only.
In other recent news, ONE Gas, Inc. has made significant progress in financial operations. The natural gas distributor expanded its credit facility with $75 million, raising the total commitment to $1.275 billion, with the addition of Regional Bank as a lender, according to an SEC filing. This move comes as ONE Gas continues to manage capital amid evolving energy market dynamics.
In terms of performance, ONE Gas reported a strong first quarter in 2024 with a net profit of $99 million. This positive result was achieved despite a 5% increase in operating and maintenance costs, with revenue growth driven by new rates and customer growth.
Ahead of analysts, Mizuho revised its price target for ONE Gas to $65.00, from $64.00, while maintaining a Neutral stance on the company’s stock. The company recognizes the potential benefits of higher capital costs, which promote equity in future rate case decisions, despite the challenges posed by higher short-term rates.
This new development provides investors with a clearer picture of ONE Gas’ current financial position and future prospects, as the company remains on track to reach the midpoint of its 2024 financial guidance.
InvestingPro Insights
ONE Gas, Inc. (NYSE: OGS ) continues to demonstrate its commitment to shareholder returns, as evidenced by its latest dividend declaration. Key financial metrics from InvestingPro indicate a market capitalization of $3.74 billion, with a Price/Earnings (P/E) ratio of 16.26, reflecting investors’ perception of the company’s earnings potential. Despite the challenging environment, the company maintained a Gross Profit Margin of 34.89% for the trailing twelve months in Q1 2024.
InvestingPro Tips reveals that ONE Gas operates with a significant debt load and short-term liabilities that exceed its liquid assets. However, the company has a record of raising dividends for 10 consecutive years, which is in line with dividend announcements 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 can find additional insights and tips about ONE Gas at https://www.investing.com/pro/OGS, including 3 other InvestingPro Tips to help evaluate the company’s financial health and investment potential. Remember to use the coupon code NOTICE 24 to get up to 10% discount on annual Pro and annual or bi-annual Pro+ subscriptions.
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