Here Are Some Reasons to Add ONE Gas Stock to Your Portfolio Right Now

ONE Gas, Inc. (OGS) exhibits strong operational and financial performance, driven by an expanding customer base (0.8% YOY in Q2 2025) and strategic $750 million capital investments for 2025 aimed at infrastructure improvement and service expansion. The company forecasts robust growth, with 2025 EPS estimated at $4.34 (up 1.4% in 90 days) and sales projected to increase 17% to $2.44 billion, alongside a 4-6% annual EPS growth through 2029. OGS also maintains a solid debt position (40.44% debt-to-capital) and plans for 1-2% annual dividend increases through 2029, offering a 3.53% yield, positioning it as an attractive investment within the utility sector.

Analysis

ONE Gas, Inc. (OGS) demonstrates a robust operational and financial profile, positioning it as a strong candidate in the utility sector. The company's growth is underpinned by a steadily expanding customer base, which grew 0.8% year-over-year in the second quarter of 2025 and is projected to increase 0.9% annually through 2028. This demand is supported by a significant capital investment plan of $750 million for 2025, aimed at enhancing pipeline integrity, cybersecurity, and service expansion. Financially, the outlook is positive, with consensus estimates for 2025 sales indicating a 17% year-over-year increase to $2.44 billion, and the EPS forecast recently revised upward by 1.4% to $4.34. The company itself projects a 4-6% annual EPS growth rate through 2029. OGS maintains a healthy balance sheet, with a total debt-to-capital ratio of 40.44%, which is notably better than the industry average of 51.09%, and a time-to-interest earned ratio of 3, signaling a strong ability to service its debt. This financial stability supports a shareholder-friendly capital return policy, including a 3.53% dividend yield and a stated goal of 1-2% average annual dividend increases through 2029.

Key Decisions for Investors

• Consider OGS for a core utility holding, given its combination of steady customer growth, a defined $750 million capital investment plan, and a stronger-than-average balance sheet.
• For income-focused investors, the 3.53% dividend yield, which significantly exceeds the S&P 500 composite's yield, combined with guided annual dividend growth, offers a compelling source of reliable income.
• Despite the positive outlook, investors should compare OGS's long-term earnings growth rate of 5.56% against higher-growth peers mentioned in the report, such as ATO (7.32%) and SRE (7.01%), to assess its relative value and growth potential within the sector.
• Monitor the execution of the capital investment program and its impact on achieving the company's guided 4-6% annual EPS growth through 2029 as a key performance indicator.