Here's Why You Should Include ONE Gas Stock in Your Portfolio Now

ONE Gas, Inc. OGS is benefiting from 100% regulated operations and an expansion of its customer base. The company is also gaining from its strategic investments that help improve its infrastructure and provide service efficiently. Given its growth opportunities, OGS makes for a solid investment option in the utility sector.

Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.

OGS’ Growth Projections

The Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased nearly 1.2% in the past 90 days to $4.32. 

The Zacks Consensus Estimate for 2025 sales is pinned at $2.43 billion, indicating a year-over-year increase of 16.6%. 

OGS’ long-term (three to five years) earnings growth rate is 5.56%.

OGS’ Dividend History

Regular investments in a fully regulated company and OGS’ ability to generate sufficient cash flows should support management’s plans of rewarding its shareholders with an average annual dividend increase of 1-2% through 2029, subject to the board of directors' approval. Currently, ONE Gas’ quarterly dividend is 67 cents per share, resulting in an annualized dividend of $2.68. The company’s current dividend yield is 3.57%, better than the Zacks S&P 500 composite’s 1.16%.

Debt Position of OGS

Currently, ONE Gas’ total debt to capital is 40.44%, better than the industry’s average of 51.09%. 

The time-to-interest earned ratio at the end of the second quarter of 2025 was 3. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.

OGS’ Systematic Investments & Customer Growth

ONE Gas’ 2025 capital investment, including asset removal costs, is expected to be $750 million. Capital investments for extensions to new customers are anticipated to be nearly $180 million. The ongoing capital expenditures are directed toward pipeline integrity, extension of services to new areas, increase in system capacity, pipeline replacements, automated meter reading, government-mandated pipeline relocations, facilities, information technology assets and cybersecurity.

Since 2015, the company has been steadily increasing its customer base every year and expects an average annual customer growth of 0.9% through 2028 across its service territories. During the second quarter of 2025, OGS served 2,302,000 customers, up 0.8% year over year.

OGS’ Price Performance

In the past six months, the stock has risen 4% compared with the industry’s 2.2% growth.

Other Stocks to Consider

A few other top-ranked stocks from the same industry are New Jersey Resources NJR, Sempra Energy SRE and Northwest Natural NWN, each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for NJR’s fiscal 2025 EPS indicates year-over-year growth of 12%. The Zacks Consensus Estimate for sales indicates an improvement of 10.4% from the previous year’s registered figure.  

SRE’s long-term earnings growth rate is 7.94%. The company delivered an average earnings surprise of 0.6% for the trailing four quarters.

The Zacks Consensus Estimate for NWN’s 2025 EPS indicates year-over-year growth of 23.6%. The company delivered an average earnings surprise of 33.2% for the trailing four quarters.

 

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This article originally published on Zacks Investment Research (zacks.com).

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