TacticScaleWhat ONE Gas Does & How It Makes Money (OGS)
Updated October 2026 · reflects ONE Gas's latest reported financials
Regulated natural gas utility serving Oklahoma, Kansas and Texas. As a regulated utility, it earns revenue from delivery charges and service fees that state regulators approve for its residential, commercial, industrial, transportation and wholesale customers.
How ONE Gas makes money
As a regulated utility, it earns revenue from delivery charges and service fees that state regulators approve for its residential, commercial, industrial, transportation and wholesale customers. Rates are generally set to recover its costs and give it a return on the money it invests in its pipeline system.
What ONE Gas does
ONE Gas, Inc. is a regulated natural gas distribution utility based in Tulsa, Oklahoma, with roots going back to 1906. It serves about 2.3 million residential, commercial, industrial, transportation and wholesale customers in Oklahoma, Kansas and Texas. As of December 31, 2025, it owned about 43,200 miles of distribution pipelines and 2,200 miles of transmission pipelines. The business is pure-play gas distribution in three states. Its earnings depend on rates approved by regulators and on investment in its pipeline system, which makes it a fairly steady, infrastructure-heavy utility.
Products & services
- Residential natural gas distribution
- Commercial and industrial gas service
- Gas transportation service
- Wholesale natural gas service
- Distribution and transmission pipeline network
What is ONE Gas worth?
On an owner-earnings DCF, ONE Gas's most-likely value is about $16 versus a recent price near $72 (77% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$10) with a margin of safety — so the honest verdict here is “Stretched — richly priced.” Fair value earns its keep only at the extremes, not in the wide middle.
Today's $72 is above even the optimistic Bull case ($19) — the market expects faster, longer growth than modeled here. Expensive unless that extra growth actually shows up.
⚠ High leverage — net debt is 59.3× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
⚠ Capital-intensive — this business reinvests heavily, so free cash flow runs well below its earnings. Fair value here is built on free cash flow, which understates owner earnings for reinvestment-heavy companies — read it as conservative.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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