TULSA, Okla. - ONE Gas, Inc. (NYSE: NYSE:OGS), a regulated natural gas utility with a market capitalization of $4.09 billion, has announced an increase in its quarterly dividend. The board of directors approved a 1-cent rise to 67 cents per share for the first quarter of 2025. This adjustment brings the annualized dividend to $2.68 per share, representing a current yield of 3.63%.
The newly declared dividend is scheduled for payment on March 7, 2025, to shareholders who are on record by the close of business on February 21, 2025. Looking ahead, ONE Gas anticipates an average annual dividend growth of 1% to 2% through 2029. According to InvestingPro, the company has maintained an impressive 11-year consecutive dividend growth streak. The company aims to maintain a target dividend payout ratio in the range of 55% to 65% of net income, though this is contingent upon board approval.
ONE Gas operates as a 100% regulated utility, serving over 2.3 million customers across Kansas, Oklahoma, and Texas. The company's divisions include Kansas Gas Service, Oklahoma Natural Gas, and Texas Gas Service, which rank as the largest or among the largest natural gas distributors in their respective states. Trading at a P/E ratio of 18.83, the company remains profitable with analysts expecting continued earnings growth. InvestingPro subscribers can access detailed financial health scores and 12+ additional expert insights about ONE Gas's performance and outlook.
The company's forward-looking statements regarding financial performance and dividend projections are based on current expectations and are subject to various risks and uncertainties. These statements are protected under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of the news release.
ONE Gas's strategic plans and future operations could be affected by numerous factors, including regulatory changes, economic conditions, competition from alternative energy sources, and operational risks. Based on InvestingPro analysis, the company operates with a significant debt burden, and its short-term obligations exceed liquid assets. With the stock currently trading at $72.16 and analyst targets ranging from $66 to $82, investors should carefully consider these factors in their investment decisions.
This dividend announcement is based on a press release statement and reflects the company's commitment to providing shareholder value while navigating the complexities of the energy market.
In other recent news, ONE Gas Inc. has seen a series of significant developments. The natural gas distributor has amended its forward sale agreements, resulting in the issuance of shares of its common stock. The company has settled and issued over 3 million shares in relation to separate transactions with Bank of America (NYSE:BAC) and RBC Capital Markets. In terms of analyst coverage, Jefferies initiated coverage on ONE Gas, attributing the company's stability to its strong balance sheet and regulatory outlook, but maintained a Hold rating due to below-average normalized EPS growth. In response to ONE Gas's updated earnings base, Ladenburg Thalmann downgraded the company from Buy to Neutral and lowered its price target. However, Mizuho (NYSE:MFG) Securities and Stifel raised their price targets for ONE Gas, citing stronger-than-expected projections for 2025. The company has projected steady expansion and significant capital investments through 2029, with a net income ranging between $254 million and $261 million by 2025, and earnings per diluted share expected to be $4.20 to $4.32. This positive outlook has been supported by five analysts who have recently revised their earnings estimates upward.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.