ONE Gas, Inc. (NYSE:OGS) Q1 2022 Earnings Conference Call May 3, 2022 11:00 AM ET

Company Participants

Brandon Lohse - Director, IR

Robert McAnnally - President, CEO & Director

Caron Lawhorn - SVP, CFO & Treasurer

Curtis Dinan - SVP & COO

Conference Call Participants

Kody Clark - Bank of America Merrill Lynch

Gabe Moreen - Mizuho Securities

Operator

Good day, and welcome to the ONE Gas First Quarter Earnings Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Brandon Lohse. Please go ahead, sir.

Brandon Lohse

Good morning, and thank you for joining us on our first quarter 2022 earnings conference call. This call is being webcast live, and a replay will be made available later today. After our prepared remarks, we will be happy to take your questions.

A reminder that statements made during this call that might include ONE Gas expectations or predictions should be considered forward-looking statements and are covered by the safe harbor provisions of the Private Securities Litigation 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 statements. And 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 McAnnally, President and Chief Executive Officer; Caron Lawhorn, Senior Vice President and Chief Financial Officer; and Curtis Dinan, Senior Vice President and Chief Operating Officer.

Now, I'll turn the call over to Sid.

Robert McAnnally

Thanks, Brandon, and good morning, everyone. There are many issues calling for attention in today's dynamic environment. At ONE Gas, we are focused on positioning the company to address the emerging business environment, while continuing to execute our strategic plan. A review of the current landscape suggests that we're on the right path, as our team maintains focus on safe and reliable delivery of natural gas to our customers, building additional capacity to respond to the significant organic growth in our service territory and making progress toward our renewable natural gas goals.

I'll turn it over to Caron and then Curtis to discuss the details that lead us to these conclusions. Caron?

Caron Lawhorn

Thanks, Sid, and good morning, everyone. Net income for the first quarter was $98.9 million or $1.83 per diluted share compared with $95.6 million or $1.79 per diluted share in the same period 2021. Our first quarter 2022 results were impacted by $3.6 million of expenses related to a decrease in the unrealized mark-to-market value of assets and liabilities associated with our nonqualified employee benefit plans. These noncash items, which are not included in our guidance, impacted EPS by $0.05 for the first quarter of 2022. By comparison, in the first quarter of 2021, we recognized income of $100,000.