ONE Gas, Inc.
ONE Gas, Inc. is a regulated natural gas distribution utility headquartered in Tulsa, Oklahoma. Through its operating utilities in Oklahoma, Kansas, and Texas, the company delivers natural gas to residential, commercial, industrial, and transportation customers.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueDelivery of natural gas through local utility networks to end-use customers.
Tariff-based transport of customer-owned gas through the utility system.
Customer charges tied to approved regulatory recovery mechanisms and securitization.
Miscellaneous service charges and other regulated utility revenues.
Customers
ONE Gas serves end users that rely on local gas distribution networks for heating, cooking, and other energy needs. Its customer base is concentrated in residential households, commercial businesses, and a smaller set of industrial and transportation users across three states. Revenue is driven by regulated delivery service, customer counts, and usage patterns rather than by commodity sales economics.
Households buying gas delivery for space heating, water heating, cooking, and drying; this is the core customer base.
Businesses and institutions using gas for heating and operational energy needs under regulated service tariffs.
Larger users that may buy transportation service and source gas separately while paying for delivery.
Customers that contract for gas transport rather than bundled commodity supply, often under negotiated tariffs.
Strategy
ONE Gas focuses on operating a safe, reliable, and fully regulated distribution system while investing in infrastructure that supports customer growth and service quality. Its strategy centers on workforce engagement, operational safety, capital investment in the network, and maintaining the value proposition of natural gas for core end uses.
A regulated utility depends on safe operations and reliable infrastructure to retain regulatory trust and customer confidence.
Earnings depend on approved rates, allowed returns, and timely recovery of costs through regulatory mechanisms.
Adding customers and expanding service territory supports rate base growth and spreads fixed utility costs.
A large regulated network requires disciplined execution to control operating complexity and support service quality.
Geography
The company operates in Oklahoma, Kansas, and Texas, with major customer concentrations in Oklahoma City, Tulsa, Kansas City, Wichita, Topeka, Austin, and El Paso. Oklahoma and Kansas are its largest markets by customer count, while Texas is a meaningful third state with distinct local regulatory and competitive conditions.
Risks
ONE Gas faces regulatory, operational, and market risks typical of a regulated gas utility. Its earnings depend on approved rates, weather-driven usage, customer growth, and the relative attractiveness of natural gas versus electricity, while safety, cyber, and infrastructure failures could disrupt service and increase costs.
- Regulatory rate-setting riskImpact: HighLikelihood: Medium
Revenue and earnings depend on approved base rates, allowed returns, and recovery mechanisms in each state.
Exposure - Weather and usage volatilityImpact: HighLikelihood: Medium
Variable charges depend on consumption, which is affected by heating demand and weather normalization.
Exposure: All service territories
- Operational and safety incidentsImpact: HighLikelihood: Medium
Distribution utilities face physical hazards, service interruptions, and potential environmental or liability claims.
Exposure: Pipeline and distribution network
- Cybersecurity and critical infrastructure threatsImpact: HighLikelihood: Medium
Attacks on IT/OT systems could disrupt operations, expose data, and trigger regulatory or legal costs.
Exposure: Information systems and utility operations
- Energy substitution and competitionImpact: Medium
Electricity and other energy sources compete with natural gas for new equipment installations and customer choice.
Exposure: Residential and small commercial markets
Accounting
Judgemental itemsMonthly billing cycles do not align with reporting periods, so management estimates delivered-but-unbilled gas.
Impact: Affects accounts receivable and revenue timing
Commodity costs are recovered through regulatory mechanisms, so revenue and cost of gas both move with supply prices.
Impact: Inflates top line without equivalent operating margin impact
Consumption varies with heating demand and normalization mechanisms only partially offset weather effects.
Impact: Quarterly revenue comparability and earnings volatility
Kansas securitization customer charges and related amortization affect reported revenue and expense patterns.
Impact: Separates recovery of extraordinary costs from normal utility rates
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Last updated: 24/09/2026