Committed to Value

2018 Annual Report



ONE Gas, Inc. is a 100-percent regulated natural gas utility and trades on the New York Stock Exchange under the symbol “OGS.” ONE Gas is included in the S&P MidCap 400 Index and is one of the largest natural gas utilities in the United States.

We provide natural gas distribution services to approximately 2.2 million customers in Kansas, Oklahoma and Texas.

We are headquartered in Tulsa, Oklahoma.

Our divisions include: Kansas Gas Service (the largest in Kansas), Oklahoma Natural Gas (the largest in Oklahoma), and Texas Gas Service (the third largest in Texas).

Our largest natural gas distribution markets by customer count are Kansas City, Wichita and Topeka; Oklahoma City and Tulsa; and Austin and El Paso.

We serve residential, commercial, industrial, transportation, wholesale and public authority customers in all three states.


Our mission is to deliver natural gas for a better tomorrow.


Our vision is to be a premier natural gas distribution company, creating exceptional value for our stakeholders.

Core Values

Our core values are safety, ethics, inclusion and diversity, service and value.


We are committed to operating safely and in an environmentally responsible manner.


We are accountable to the highest ethical standards and are committed to compliance. Honesty, trust and integrity matter.

Inclusion and Diversity

We embrace an inclusive and diverse culture that encourages collaboration. Every employee makes a difference and contributes to our success.


We provide exceptional service and make continuous improvements in our pursuit of excellence.


We create value for all stakeholders, including our customers, employees, investors and communities.

To Our Fellow


With a steadfast commitment to creating exceptional value for our stakeholders, ONE Gas continued to build on its legacy of safely and reliably delivering natural gas to our approximately 2.2 million customers in 2018.

Learn More


Total Recordable Incident Rate reduced by


Days Away, Restricted or Transferred reduced by


Preventable Vehicle Incident Rate reduced by


$1.7 billion

In capital expenditures

Replaced more than

1,300 miles

of vintage pipe

Earnings Per Share


compound annual growth rate

Total Shareholder Return


$8.8 million

in ONE Gas Foundation grants and community giving

Building Upon Our Legacy

With operations in Kansas, Oklahoma and Texas, we provide affordable and reliable comfort and convenience to millions of homes in communities across our three states including some regularly ranked as the nation’s best places to raise a family or grow a business: Kansas City, Oklahoma City and Austin, to name just a few.

While our customer mix remains predominantly residential, we also serve commercial, industrial and transportation customers who are attracted to the affordability and efficiency of natural gas. Our natural gas delivery system is designed to meet the peak energy needs of our customers at any time, any day and any season. And the competitive price advantage of natural gas remains approximately 3.5-to-1 compared with the alternative of electricity in our service areas.

We know building upon a legacy takes time and while we are extremely pleased with the results we’ve attained in our first five years, we’re even more optimistic about our future.

Our future success will be driven by our focus on the same five key themes we reiterate every year. How we approach these themes and live our core values ultimately sets us apart. We are pleased to report on the progress we’ve made in 2018 and where we’re headed in the coming years.


Zero Harm, Zero Incidents

At ONE Gas, safety isn’t just an aspiration - it’s our number one core value. We’re committed to operating safely and in an environmentally responsible manner, which requires us to continually look for new ways to reduce risk for our employees, customers and communities. This commitment has resulted in improvements in safety incidents measured by national standards reported by the American Gas Association.

While we are proud of the progress we’ve made, even one safety incident is too many. We remain committed to our goal of zero harm and zero incidents and will continue to evaluate policies, procedures, training and technology that can help us progress toward that goal.

Trir Graph
Dart Graph
Pvir Graph

High-performing Workforce

Embracing Inclusion, Diversity and Collaboration

Advancing an inclusive, diverse and ethical workplace for our more than 3,500 employees is more than a box to check for us. We’ve seen firsthand how an inclusive environment, where all viewpoints are welcome, creates a high-performing workplace and an environment where top talent wants to work.

It also creates engaged employees who care as much about one another as they do the customers we serve. That’s not merely an opinion – our employees agree. Since we began measuring employee engagement in 2016, we’ve seen a marked improvement in scores each year, with 2018 having the highest scores yet. Studies have shown organizations with highly-engaged employees have fewer safety incidents, less turnover and are more productive.

Connecting people and ideas is at the heart of inclusive workplaces. In 2018, we expanded our employee resource groups, adding three new groups for a total of seven. These employee-driven groups have the potential to bring about change that improves relationships among employees, customers and the company. The groups bring together employees to increase cultural awareness and offer unique perspectives supporting various business functions in delivering on our business strategy. This may take the form of customer communications, community engagement, policy changes, cultural change, more diverse recruitment, employee retention and leadership development opportunities.

In 2019, we will continue to build on our employee leadership development program, which offers unique, personalized training for leaders at all levels. Program enhancements will provide employees the opportunity to explore their professional goals while providing instruction to increase their leadership competencies.

Leveraging Technology

Lowering costs, increasing resources

Leveraging technology remains a top focus as we look for new ways to reduce expenses, increase efficiencies and safeguard our infrastructure.

Learn More


Investing Today, Value for Tomorrow

We continue managing our capital plan by paying attention to the condition of our system, construction resources, credit metrics and customer bill impacts. In 2018, we invested $394 million of capital, of which 70 percent was for system integrity and reliability improvements, including infrastructure replacement.

Learn More

Financial Overview

We reported 2018 net income of $172 million, or $3.25 per diluted share, compared with $163 million, or $3.08 per diluted share, in 2017; and 2018 capital expenditures, including asset removal costs, of $442 million, compared with $418 million in 2017. Our 2019 diluted earnings per share are expected to be within a range of $3.27 to $3.57 per share. Our 2019 capital expenditures, including asset removal costs, are projected to be approximately $450 million.

Learn More


2018 2017 2016
Total Revenues And Net Income
Total Revenues (thousands) $1,633,731 $1,539,633 $1,427,232
Net Income (thousands) $172,234 $162,995 $140,095
Earnings and Dividends
Basic $3.27 $3.10 $2.67
Diluted $3.25 $3.08 $2.65
Dividends Per Share $1.84 $1.68 $1.40
Margin, Volumes and Weather
Net Margin (thousands)* $919,095 $925,132 $885,435
Total Volumes Delivered (Bcf) 392.5 343.7 344.8
Actual Heating Degree Days 10,521 8,184 8,314
Normal Heating Degree Days 9,959 9,938 9,909
Customers and Employees
Average Number of Customers (thousands) 2,179 2,166 2,152
Employees 3,500 3,500 3,400
Common Stock
Market Value Per Share: Year-end Closing Price $79.60 $73.26 $63.96
Average Shares of Common Stock, Outstanding (thousands):

Basic 52,693 52,527 52,453
Diluted 53,029 52,979 52,963

*See discussion of non-GAAP financial measure inside back cover.


Board of Directors

Executive Team

Douglas H. Yaeger

Retired Chairman,
President and Chief Executive Officer
The Laclede Group, Inc. (Spire, Inc.)

Pattye L. Moore

Red Robin Gourmet Burgers

Michael G. Hutchinson

Retired Partner
Deloitte & Touche

Tracy E. Hart

Tarlton Corporation

John W. Gibson

ONE Gas, Inc.

Arcilia C. Acosta

President and Chief Executive Officer
CARCON Industries and Construction

Pierce H. Norton II

President and Chief Executive Officer ONE Gas, Inc.

Eduardo A. Rodriguez

Strategic Communication Consulting Group

Robert B. Evans

Retired President and Chief Executive
Duke Energy Americas

As of April 3, 2019

Pierce H. Norton II, 59

President and Chief Executive Officer

Curtis L. Dinan, 51

Senior Vice President

Mark. A. Bender, 54

Senior Vice President Administration Chief Information Officer

Caron A. Lawhorn, 58

Senior Vice President
Chief Financial Officer

Robert S. McAnnally, 55

Senior Vice President

Julie A. White, 48

Vice President Communications,
Public Affairs and Inclusion & Diversity

Joseph L. McCormick, 59

Senior Vice President
General Counsel and Assistant Secretary


2018 Annual Report

Committed To Value

2018 Annual Report

Download Report