5/6/2025

speaker
Cole
Operator/Moderator

recorded. At this time, I would like to turn the conference over to Erin Daly. Please go ahead, Ms. Daly.

speaker
Erin Daly
Conference Host/IR Contact

Thank you, Cole. Good morning, everyone, and thank you for joining us on our first quarter 2025 earnings conference call. This call is being webcast live, and a replay will be available later today. After our prepared remarks, we're happy to take your questions. Statements made during this call that might include OneGas expectations or predictions should be considered forward-looking statements and are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Securities Act of 1933, and the Securities and Exchange Act of 1934, each as amended. Actual results could differ materially from those projected in any forward-looking statement. For a discussion of factors that could cause actual results to differ, please refer to our SEC filings. Joining us on the call this morning are Sid McAnally, President and Chief Executive Officer, Chris Pignalti, Senior Vice President and Chief Financial Officer, and Curtis Dinan, Senior Vice President and Chief Operating Officer. And now I'll turn the call over to Sid.

speaker
Sid McAnally
President & Chief Executive Officer

Thanks Erin, and good morning everyone. We're happy to be with you this morning to discuss our first quarter performance. We reported strong financial results yesterday, including net income of $119 million, or $1.98 per diluted share. We achieved these results by executing our regulatory plan, managing O&M expenses, and continuing to add new customers. New rates that took effect at the end of last year allow us to recover investments in our system. These investments supported ongoing customer growth and enhanced system reliability. The value of those system investments was shown earlier this year as our system faced five named winter storms in January and February without any significant outages. Last quarter, we discussed how company-wide initiatives resulted in a faster pace of O&M expense moderation than we had expected. This quarter, our teams continued to focus on expense management, contributing to our positive financial results. We've taken the same disciplined approach to our procurement activities, Direct relationships with our suppliers and careful planning have strengthened our supply chain, and we expect to be largely insulated from material tariff impacts through 2025. In December, we shared our decision to de-risk our five-year financial plan. Our plan includes an earnings per share CAGR of approximately 6% through 2029, matched with reduced capital intensity and related funding needs. This approach limits our financial risks while further strengthening our already robust credit profile. All of us at One Gas remain committed to our core mission to safely and reliably deliver natural gas to our customers. We support that commitment through programs that engage our employees and support our safety culture. For the eighth year in a row, our annual employee survey showed a higher level of engagement across our workforce. A highly engaged workforce drives performance and reinforces a culture of safety. We're honored to have recently received the American Gas Association Safety Award for having the lowest rate of significant injuries among our peers for the eighth consecutive year. This achievement is a testament to our coworkers' daily commitment to safety and excellence in serving our 2.3 million customers, and we are deeply grateful for their dedication. Now I'll ask Chris to discuss the details of our financial performance for the quarter. Chris?

Disclaimer

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