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TULSA, Okla. - ONE Gas, Inc. (NYSE: OGS), a regulated natural gas utility with a market capitalization of $4.78 billion, announced a public offering of 2.5 million shares of common stock, with an additional option for the underwriter to purchase up to 375,000 extra shares. The stock is currently trading near its 52-week high of $82.25, according to InvestingPro data. This transaction includes a forward sale agreement with JPMorgan Chase Bank, National Association, which will allow the bank or its affiliate to borrow and sell ONE Gas shares to the underwriter.
J.P. Morgan Securities LLC is serving as the sole underwriter for the offering. The shares will be sold on the New York Stock Exchange, among other platforms, at market prices or at negotiated prices. The settlement of the forward sale agreement is scheduled to occur by December 31, 2026, with ONE Gas reserving the right to elect cash or net share settlement.
The company will not immediately receive proceeds from the stock sale unless specific conditions necessitate a direct sale of shares to the underwriter. Proceeds from any future settlement are intended for general corporate purposes, which may include debt management and investment in infrastructure. This capital raising effort comes as InvestingPro data shows the company’s short-term obligations exceed its liquid assets, with a current ratio of 0.59 and total debt of $3.21 billion.
The offering is part of a shelf registration statement filed with the Securities and Exchange Commission (SEC), and a preliminary prospectus supplement will be made available on the SEC’s website. Interested parties can obtain copies of the prospectus from J.P. Morgan Securities LLC.
ONE Gas, headquartered in Tulsa, Oklahoma, serves over 2.3 million customers across Kansas, Oklahoma, and Texas. It is one of the largest natural gas utilities in the United States and is included in the S&P MidCap 400 Index.
The information in this article is based on a press release statement from ONE Gas, Inc. The forward-looking statements in the press release are based on current expectations and are subject to various risks and uncertainties that could cause actual results to differ materially. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of the press release.
In other recent news, ONE Gas Inc. reported its first-quarter 2025 earnings, revealing a performance that exceeded market expectations. The company announced earnings per share (EPS) of $1.98, surpassing the forecasted $1.85, while revenue reached $935.2 million, above the anticipated $811.2 million. This strong financial showing was attributed to new rate implementations and colder weather, which increased demand in service areas like Texas and Oklahoma. Additionally, ONE Gas set its net income guidance for 2025 between $254 million and $261 million, with EPS projected to be between $4.20 and $4.32. The company completed $178 million worth of capital projects during the quarter and plans to continue its strategic initiatives, including regulatory filings for rate adjustments. Analysts have noted the company’s robust financial strategy, with firms like Jefferies and UBS showing interest in ONE Gas’s operational efficiencies and future growth plans. The company also highlighted its ongoing efforts in managing operational expenses and maintaining a strong supply chain. These recent developments underscore ONE Gas’s commitment to growth and operational efficiency in the face of market challenges.
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