Will ONE Gas' (OGS) New $1.5 Billion Credit Facility Reshape Its Growth Ambitions?

• On October 30, 2025, ONE Gas, Inc. announced it had entered into a third amended and restated credit agreement, securing a US$1.5 billion unsecured revolving credit facility with Bank of America and other lenders, with options to increase commitments by up to US$750 million and an initial maturity of October 30, 2030.
• This substantial credit facility provides ONE Gas with increased financial flexibility for working capital, capital expenditures, and potential acquisitions, while also signaling strong lender confidence in the company's financial stability and prospects.
• We’ll examine how this expanded access to funding could influence ONE Gas’s planned infrastructure investments and growth trajectory in the coming years.

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ONE Gas Investment Narrative Recap

ONE Gas appeals to investors who believe in steady, regulated growth driven by demand for natural gas in Texas, Oklahoma, and Kansas, despite ongoing industry and regulatory challenges. The new US$1.5 billion credit facility increases financial flexibility, but its real impact will depend on whether expanded investments can keep up with rising costs and regulatory risks, without further compressing margins in the near term. The most substantial short-term catalyst remains favorable regulatory actions that could support recovery of elevated capital expenditures, while the biggest current risk is if those expenses ultimately outpace earned revenues, pressuring future cash flow and returns.

Among recent company news, the August 2025 update raising full-year earnings guidance is especially relevant following the credit agreement. While the additional liquidity may support ONE Gas’s growth plans and earnings stability, the company’s ability to effectively translate regulatory clarity and capital into sustainable profitability will be closely watched. The real question investors must consider, however, is what happens if regulatory support lags behind cost escalation…

Read the full narrative on ONE Gas (it's free!)

ONE Gas' narrative projects $2.6 billion revenue and $322.7 million earnings by 2028. This requires 3.5% yearly revenue growth and a $75 million earnings increase from $247.7 million today.

Uncover how ONE Gas' forecasts yield a $80.07 fair value, in line with its current price.

Exploring Other Perspectives

Only one community member at Simply Wall St estimated a fair value of US$73.42 for ONE Gas shares. While this viewpoint is limited, many market participants are watching capital expenditures and regulatory outcomes as central to future profitability.

Explore another fair value estimate on ONE Gas - why the stock might be worth as much as $73.42!

Build Your Own ONE Gas Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ONE Gas research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free ONE Gas research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ONE Gas' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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