ONE Gas — Third Quarter 2026 Earnings Summary

Financial Performance

• Third quarter 2026 adjusted net income was $33.5 million ($0.53 per diluted share), up from $28.6 million ($0.47 per diluted share) in the same period in 2025.
• Year-to-date 2026 adjusted net income was $218.9 million ($3.47 per diluted share), up from $181.3 million ($3.00 per diluted share) in 2025.
• Third quarter 2026 GAAP net income was $31.2 million ($0.49 per diluted share), compared to $26.5 million ($0.44 per diluted share) in 2025.
• Year-to-date 2026 GAAP net income was $206.7 million ($3.27 per diluted share), compared to $177.9 million ($2.94 per diluted share) in 2025.
• Third quarter 2026 operating income was $77.4 million, compared to $65.4 million in the third quarter of 2025.
• Year-to-date 2026 operating income was $349.6 million, compared to $317.7 million in the first nine months of 2025.
• Third quarter 2026 total revenues were $391.3 million, compared to $379.1 million in the same period in 2025.
• Year-to-date 2026 total revenues were $1,634.7 million, compared to $1,738.1 million in the first nine months of 2025.
• Capital expenditures and asset removal costs were $229.0 million in the third quarter of 2026, compared to $207.6 million in the same period in 2025.
• Year-to-date capital expenditures and asset removal costs were $586.9 million in 2026, compared to $575.4 million in 2025.
• Net interest expense (excluding KGSS-I securitized bonds) increased $1.6 million in the third quarter of 2026.
• Net interest expense (excluding KGSS-I securitized bonds) decreased $5.1 million for the nine months ended September 30, 2026.
• Income tax expense included a credit for amortization of the regulatory liability associated with excess deferred income taxes (EDIT) of $2.2 million for the third quarter of 2026 and $15.0 million for the nine months ended September 30, 2026.

Guidance and Future Outlook

• The Company raised its 2026 adjusted earnings per diluted share guidance to a range of $4.95 to $5.01, from a previous range of $4.89 to $4.95.
• The Company raised its 2026 adjusted net income guidance to a range of $313 million to $317 million, from a previous range of $310 million to $314 million.
• The midpoint of 2026 adjusted earnings per diluted share guidance increased to $4.98, up from the previous guidance midpoint of $4.92.
• Capital investments, including asset removal costs, are expected to be approximately $800 million in 2026.
• Capital investments for extensions to new customers are expected to be approximately $230 million of the total $800 million capital investment.
• Management expects average 2026 customer bills to remain flat to last year.
• Management anticipates continued opportunity as diverse large-load demand develops across its footprint.

Business Segments and Product Lines

• Revenue increases in the third quarter were driven by a $13.5 million increase from new rates and a $3.3 million increase in residential sales due to net customer growth in Oklahoma and Texas.
• Year-to-date revenue increases were driven by a $57.2 million increase from new rates, a $6.5 million increase in residential sales due to net customer growth in Oklahoma and Texas, and a $2.0 million increase from released transportation capacity in Kansas.
• Year-to-date revenue decreases were driven by a $11.3 million decrease due to lower sales and transport volumes, net of weather normalization mechanisms.
• Operating expense increases in the third quarter included a $1.0 million increase in employee-related costs and a $2.8 million increase in depreciation and amortization.
• Year-to-date operating expense increases included a $13.4 million increase in employee-related costs, a $3.3 million increase in outside services, a $2.3 million increase in fleet expense, and a $3.3 million increase in bad debt expense.
• The Company serves more than 2.3 million customers across Kansas, Oklahoma, and Texas.
• Divisions include Kansas Gas Service (largest in Kansas), Oklahoma Natural Gas (largest in Oklahoma), and Texas Gas Service (third largest in Texas).

Market and Competitive Landscape

• Weather was 23 percent warmer than normal and 25 percent warmer than the prior year for the nine months ended September 30, 2026.
• The impact of weather on operating income was mitigated by weather normalization mechanisms.
• The Company faces competition from alternative forms of energy, including electricity, solar power, wind power, geothermal energy, and biofuels.

Risks and Challenges

• Risks include the ability to recover costs, income taxes, and allowed rates of return in regulated rates.
• Cyber-attacks and technology system breaches could disrupt operations or expose sensitive information.
• Changes in regulation of natural gas distribution services in Oklahoma, Kansas, and Texas.
• Adverse weather conditions, severe storms, and climate change effects on supply, demand, and costs.
• Indebtedness could make the Company more vulnerable to adverse economic conditions and limit borrowing ability.
• Operational and mechanical hazards or interruptions.
• Adverse labor relations and shortages of skilled labor.
• Capital-intensive nature of the business and access to funds for debt obligations and capital expenditures.
• Volatility in natural gas markets and the ability to secure reliable, competitively priced supply.
• Potential impairment charges and changes in accounting standards.

Management Commentary and Tone

• Robert S. McAnnally, CEO, stated the Company delivered positive results and raised its 2026 financial outlook for the second time this year.
• Management noted the 2026 financing plan is complete.
• Management expects average 2026 customer bills to remain flat to last year.
• Management highlighted continued opportunity as diverse large-load demand develops across the footprint.

Other Key Points

• In August 2026, the Company issued $375 million of 5.45 percent 10-year senior notes due September 2036.
• The Board of Directors declared a quarterly dividend of $0.68 per share ($2.72 annualized), payable on December 3, 2026, to shareholders of record on November 16, 2026.
• Kansas Gas Service received approval from the Kansas Corporation Commission (KCC) on September 22, 2026, for a $14.3 million Gas System Reliability Surcharge increase effective October 2026.
• Texas Gas Service received approval from the Texas Railroad Commission in June 2026 for a $36.9 million Gas Reliability Infrastructure Program increase effective July 2026.
• Oklahoma Natural Gas received an order from the Oklahoma Corporation Commission (OCC) on October 14, 2026, approving a $28.7 million base rate revenue increase, $2.6 million energy efficiency incentive, and $14.4 million estimated EDIT credit; this order has been appealed to the Oklahoma Supreme Court.
• A $250 million 13-month unsecured term loan matured in September 2026.
• The Company is included in the S&P MidCap 400 Index.