# ONE Gas, Inc. > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/fi/companies/ONE Gas, Inc.). ## Overview 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. ## Products & services • Natural gas distribution service • Natural gas transportation service • Regulated customer billing and delivery charges • Securitization customer charges in Kansas • Miscellaneous service charges and regulatory mechanisms - **Natural gas distribution** (85%) — Delivery of natural gas through local utility networks to end-use customers. - **Natural gas transportation** (5%) — Tariff-based transport of customer-owned gas through the utility system. - **Regulatory and pass-through charges** (8%) — Customer charges tied to approved regulatory recovery mechanisms and securitization. - **Other utility revenues** (2%) — Miscellaneous service charges and other regulated utility revenues. - Natural gas distribution service - Natural gas transportation service - Regulated customer billing and delivery charges - Securitization customer charges in Kansas - Miscellaneous service charges and regulatory mechanisms ## 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. - **Residential customers** (primary) — Households buying gas delivery for space heating, water heating, cooking, and drying; this is the core customer base. - **Commercial customers** (primary) — Businesses and institutions using gas for heating and operational energy needs under regulated service tariffs. - **Industrial customers** (secondary) — Larger users that may buy transportation service and source gas separately while paying for delivery. - **Transportation customers** (secondary) — Customers that contract for gas transport rather than bundled commodity supply, often under negotiated tariffs. - Residential households using gas for heating, cooking, and water heating - Commercial customers such as small businesses and institutions - Industrial customers needing firm or transportation service - Transportation customers using gas delivery under regulated tariffs - Builders and new developments that determine future gas hookups ## 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. - **Oklahoma** (45%) — Estimated from customer concentration and division footprint - **Kansas** (30%) — Estimated from customer concentration and division footprint - **Texas** (25%) — Estimated from customer concentration and division footprint - Oklahoma is the largest market and home to Oklahoma Natural Gas - Kansas is served through Kansas Gas Service and includes securitization exposure - Texas is served through Texas Gas Service and faces more local competition - Operations are concentrated in major metro areas across the three states - Geography matters because rates, weather, and regulation vary by state ## 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. - **Safety and system integrity** (short-term) — A regulated utility depends on safe operations and reliable infrastructure to retain regulatory trust and customer confidence. - **Regulated rate recovery** (medium-term) — Earnings depend on approved rates, allowed returns, and timely recovery of costs through regulatory mechanisms. - **Customer and load growth** (medium-term) — Adding customers and expanding service territory supports rate base growth and spreads fixed utility costs. - **Operational efficiency** (medium-term) — A large regulated network requires disciplined execution to control operating complexity and support service quality. - Maintain a zero-incident safety culture across gas distribution assets - Invest in system integrity, reliability, and customer growth projects - Support regulated rate recovery through filings and tariff mechanisms - Improve operational efficiency through technology and process discipline - Preserve natural gas relevance versus electricity and other energy options ## 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 risk** [high] — Revenue and earnings depend on approved base rates, allowed returns, and recovery mechanisms in each state. - **Weather and usage volatility** [high] — Variable charges depend on consumption, which is affected by heating demand and weather normalization. - **Energy substitution and competition** [medium] — Electricity and other energy sources compete with natural gas for new equipment installations and customer choice. - **Operational and safety incidents** [high] — Distribution utilities face physical hazards, service interruptions, and potential environmental or liability claims. - **Cybersecurity and critical infrastructure threats** [high] — Attacks on IT/OT systems could disrupt operations, expose data, and trigger regulatory or legal costs. - Regulatory outcomes affect allowed rates of return and cost recovery - Weather variability changes gas usage and quarterly revenue patterns - Competition from electricity can reduce gas adoption and customer growth - Operational or pipeline incidents can disrupt service and create liabilities - Cybersecurity and physical security threats can affect critical infrastructure ## Accounting Revenue recognition is driven by regulated tariffs, implied contracts, and monthly meter reads, with unbilled revenue accrued for gas delivered but not yet billed. Because gas costs are passed through to customers, the company’s reported revenue can move sharply with commodity prices even when operating income is less affected; weather normalization and regulatory mechanisms also create timing and estimate sensitivity. - **Unbilled revenue estimation** — Affects accounts receivable and revenue timing - **Regulated pass-through gas costs** — Inflates top line without equivalent operating margin impact - **Weather normalization and usage estimates** — Quarterly revenue comparability and earnings volatility - **Securitization accounting** — Separates recovery of extraordinary costs from normal utility rates - Unbilled revenue accruals depend on consumption and weather estimates - Pass-through gas costs inflate revenue but do not create margin on commodity sales - Weather normalization mechanisms affect timing and comparability of revenue - Securitization charges in Kansas create separate revenue and amortization patterns - Depreciation and regulatory asset/liability accounting affect utility earnings --- *Last updated: 2026-04-29T04:42:51.070918+00:00*