Investor Update
March 2024
Delivering Reliable & Affordable Energy
Investor Information
Contact Information and forward-looking statements
ONE Gas, Inc.
15 E 5th Street Tulsa, OK 74103 www.onegas.com
Erin Dailey
Director, Investor Relations and Sustainability
- 947-7411erin.dailey@onegas.com
Statements contained in this presentation that include or refer to Company expectations, our business outlook, our future plans or predictions relating to any matters should be considered forward-looking statements that are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Securities Act of 1933 and the Securities and Exchange Act of 1934, each as amended. All statements, other than statements of historical facts, included in this presentation are forward-looking statements. Words such as "anticipates," "expects," "projects," "intends," "goals," "plans," "potential," "might," "believes," "target," "objective," "strategy," "opportunity," "pursue," "budgets," "outlook," "trends," "focus," "on schedule," "on track," "poised," "slated," "seeks," "estimates," "forecasts," "guidance," "scheduled," "continues," "may," "will," "would," "should," "could," "likely," and variations of such words and similar expressions are intended to identify such forward-looking statements. One should not place undue reliance on forward-looking statements. In addition, statements that refer to or are based on estimates, forecasts, projections, uncertain events or assumptions, including statements relating to market opportunities, future products or processes and the expected availability and benefits of such products or processes, and anticipated trends in our businesses or the markets relevant to them, including those developments relating to regulation and litigation trends and developments, also identify forward-looking statements. Such statements are based on management's expectations as of the date of this investor presentation, unless an earlier date is indicated, and involve many risks and uncertainties, known and unknown, that could cause actual results, performance or achievements to differ materially from those expressed or implied in these forward-looking statements.
It is important to note that the actual results could differ materially from those projected in such forward-looking statements. Important risks and uncertainties that could cause actual results to differ materially from the company's expectations include, but are not limited to, our ability to recover, manage and maintain costs; the concentration of our operations in Oklahoma, Kansas and Texas; regulatory or legislative changes in the jurisdictions in which we operate; the length and severity of unpredictable events, including, but not limited to, pandemics, threatened terrorism, war or cyber-attacks or breaches, or extreme weather events, including those related to climate change; the competitive implications of alternative sources of energy and efforts to conserve energy; our competitive position, including, but not limited to our ability to secure competitive sourcing and pricing and our ability to compete with respect to expansion and infrastructure; the economic climate and our comparable economic position; our access to capital and the restrictions that result from our current capital arrangements; the effectiveness of our risk mitigation and compliance efforts; the uncertainties of any estimates or assumptions we use in our projections; our strategic and transactional efforts and future plans; and costs and uncertainties relating to our workforce, and other risks and uncertainties, including those that are set forth in ONE Gas' earnings release dated Feb. 21, 2024, which is included as an exhibit to ONE Gas' Form 8-K furnished to the SEC on such date.
For additional information regarding these and other factors that could cause actual results to differ materially from such forward-looking statements, refer to ONE Gas' Securities and Exchange Commission filings., including the Company's most recent reports on Forms 10-K and 10-Q. Copies of the Company's Form 10-K,10-Q and 8-K reports may be obtained by visiting our "Investors" website under "Financials & Filings" at https://www.onegas.com/investors/financials-and-filings/quarterly-results/default.aspx or the SEC's website at www.sec.gov. Other unpredictable or unknown factors not discussed in this presentation could also have material adverse effects on the Company, its operations or the outcomes described in the forward-looking statements in this presentation or in the Company's filings with the Securities and Exchange Commission.
All future cash dividends discussed in this presentation are subject to the approval of the ONE Gas board of directors.
All references in this presentation to guidance are based on news releases or disclosures issued on or before Feb. 21, 2024, and are not being updated or affirmed by this presentation. ONE Gas does not undertake, and expressly disclaims any duty, to update any statement made in this presentation, whether as a result of new information, new developments or otherwise, except to the extent that disclosure may be required by law.
FORWARD LOOKING STATEMENTS | 2
About Us
ONE Gas, Inc. (NYSE: OGS) is a 100-percentregulated natural gas utility and is one of the largest natural gas utilities in the United States.
ONE Gas provides natural gas distribution services to approximately 2.3 million customers in Kansas, Oklahoma and Texas.
Its largest natural gas distribution markets by customer count are
Oklahoma City and Tulsa, Oklahoma; Kansas City, Wichita and
Topeka, Kansas; and Austin and El Paso, Texas.
We deliver natural gas for a better tomorrow.
71% market share, the largest in Kansas
89% market share, the largest in Oklahoma
13% market share, the third largest in Texas
HIGHLIGHTS | 3
Recent Highlights
Creating Value for a Better Tomorrow
2024 EPS guidance
of $3.70-$4.00
- 2024-28EPS growth of 4-6%
Launched
renewable natural
gas program in Oklahoma
We estimate
$750 million in
2024 capital investments
Increased storage to ~58 Bcf, +20% from pre-Winter Storm Uri levels
Replaced over 500
miles of
transmission,
main and service
lines in 2023
6th consecutive
AGA safety award for lowest rate of serious injury
Added ~23,000 new customer connections
Pay metric tied to
emissions
reduction goal,
driven by pipeline
replacement
HIGHLIGHTS | 4
Our Core Values
Safety
We are committed to operating safely and in an environmentally responsible manner.
Ethics
We are accountable to
the highest ethical standards and are committed to compliance.
Inclusion &
Diversity
We embrace an inclusive and diverse culture that encourages collaboration. Every employee makes a difference and contributes to our success.
Service
We provide
exceptional service to our customers and support each other.
Value
We create value for
all stakeholders; our customers, employees, investors and communities.
HIGHLIGHTS | 5
Our
Strategy
Our Mission and Strategy
Mission
We deliver natural gas for a better tomorrow
Strategy
Safe & Reliable Energy
High-performing Workforce
Capital Demand Growth
Clean Energy Solutions
Serving Customers
OUR STRATEGY | 7
Constructing a Foundation for Growth and Long-term Affordability
Building Operational Capacity
Growth outlook remains solid
- Robust backlog of future meter sets
- New customer connections have slowed compared to 2022 with elevated interest rates, but growth tied to economic development continues
- Added over 23,000 new connections in 2023
Enhancing capacity & improving operational efficiency
- Increasing operating capacities and capabilities, including in-sourcing of work
- Ongoing investments in workforce development
- Coordinated capital execution supports safety, reliability, and system expansion
OUR STRATEGY | 8
Favorable Regional Growth Dynamics
Growing Demand for Natural Gas Provides Long-Term Growth Opportunity
Durable residential and commercial development, anchored to economic growth, is driving system expansion
Strong support for natural gas with energy choice legislation in all jurisdictions
Projecting five-year compound annual customer growth of 0.9%
- Texas - 1.2%
- Oklahoma - 1.0%
- Kansas - 0.4%
Moderated near-term customer growth is reflective of higher interest rates; upside potential as builder activity reignites
Source: Bureau of Labor & Statistics EMSI/QCEW Data
I-35 corridor
I-35 corridor fastest growing population in the U.S
ONE Gas positioned in KS, OK and TX with 5 of the main metro areas in the corridor
Largest warehouse labor force in the country - expected to grow 20% over next decade due to location along primary USMCA transport route
El Paso is also growing significantly but not considered in the I-35 corridor
OUR STRATEGY | 9
Regional Focus on Economic Development
Attracting large-scale manufacturing
Enel North America (Inola, OK) - Announced May 2023
- $1.0 billion solar cell and panel manufacturing plant, largest economic development project in Oklahoma history
- 1,800 construction jobs and 1,000 new permanent jobs by 2025, another 900 permanent jobs possible by 2027
Integra Technologies (Wichita, KS) - Announced February 2023
- $1.8 billion investment in outsourced semiconductor assembly and test (OSAT) operations
- ~2,000 direct jobs and ~3,100 additional jobs to be created by suppliers and business communities
EMP Shield (Coffey County, KS) - Announced February 2023
- $1.9 billion investment in new computer chip manufacturing facility
- ~1,200 direct jobs and 235,000 square feet of new facilities
Panasonic Energy Co., Ltd. (De Soto, KS) - Announced July 2022
- $4.0 billion investment in a new electric vehicle (EV) battery manufacturing facility
- ~4,000 direct jobs created and an expectation for 4,000 additional supplier and community jobs to be supported
Samsung Electronics Co., Ltd. (Taylor, TX) - Announced November 2021
- $17 billion investment in new semiconductor manufacturing facility
- ~2,000 direct jobs created; facility expected to be operational in 2H24
- Reports indicate future regional investments of up to $200B to support 11 new semiconductor plants
OUR STRATEGY | 10
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ONE Gas Inc. published this content on 01 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 March 2024 22:56:05 UTC.