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Actionable news in OGS: ONE GAS Inc,

ONE: Ogs 2015 Q3 Er News Release Exhibit

The following excerpt is from the company's SEC filing.

Exhibit 99.1

Analyst Contact:

Andrew Ziola

918-947-7163

Media Contact:

Jennifer Rector

918-947-7571

ONE Gas Announces Third-quarter 2015 Financial Results;

Updates 2015 Financial Guidance

Declares Fourth-quarter Dividend

TULSA, Okla. - October 28, 2015 - ONE Gas, Inc. (NYSE: OGS) today announced financial results for its third quarter 2015, updated its full-year 2015 guidance and declared its quarterly dividend.

Highlights include:

Third-quarter 2015 net income was $7.4 million, or $0.14 per diluted share, compared with $4.7 million, or $0.09 per diluted share, in the third quarter 2014;

Updated 2015 net income guidance to the range of $113

million to $118

million, compared with the previous guidance range of $108 million to $118 million; and

The board of directors declared a quarterly dividend of 30 cents per share, or $1.20 per share on an annualized basis, payable on Dec. 1, 2015, to shareholders of record at the close of business on Nov. 13, 2015.

“Our focus is to continue serving our customers safely and reliably,” said Pierce H. Norton II, president and chief executive officer. "We are on track with our capital investment plan, which demonstrates our commitment to pipeline system integrity. I want to thank our 3,400 employees who demonstrate our values and provide industry-leading customer service every day."

THIRD-QUARTER 2015 FINANCIAL PERFORMANCE

ONE Gas reported operating income of $24.9

million in the third quarter 2015, compared with $19.1 million in the third quarter 2014.

Net margin increased by $4.0

million compared with third quarter 2014, due primarily to a $4.6 million increase from new rates primarily in Oklahoma and Texas.

Third-quarter 2015 operating costs were $111.6

million, compared with $116.2 million in the third quarter 2014, which primarily reflects:

-more-

Updates 2015 Financial Guidance; Declares Fourth-quarter Dividend

Page 2

A $3.9 million decrease in information technology expenses, which includes $3.3 million of costs associated with the separation from ONEOK, Inc.;

A $1.6 million decrease in outside service expenses and other costs associated with pipeline maintenance activities;

A $1.1 million decrease in ad valorem taxes;

A $0.6 million decrease in fleet-related expenses;

A $0.5 million decrease in bad debt expense due primarily to warmer weather in Kansas; and

A $3.7 million increase in employee-related expenses.

Third-quarter 2015 depreciation and amortization expense was $34.0 million, compared with $31.2 million in the third quarter 2014. This increase was due primarily to an increase in depreciation expense from capital investments placed in service.

Capital expenditures were $74.3 million for the third quarter 2015, compared with $76.0

Key Statistics: More detailed information is listed on page 13 in the tables.

Residential natural gas sales volumes were 7.5

billion cubic feet (Bcf) in the third quarter 2015, down 5 percent compared with the same period last year;

Total natural gas sales volumes were 11.4

Bcf in the third quarter 2015, down 5 percent compared with the same period last year;

Natural gas transportation volumes were 43.1 Bcf in the third quarter 2015, down 1 percent compared with the same period last year; and

Total natural gas volumes delivered were 54.5 Bcf in the third quarter 2015, down 2 percent compared with the same period last year.

YEAR-TO-DATE 2015 FINANCIAL PERFORMANCE

Operating income for the nine-month 2015 period was $165.2

million, compared with $155.3 million for the same period last year.

Net margin increased by $7.5 million compared with the same period last year, which primarily reflects:

A $19.4 million increase from new rates primarily in Oklahoma and Texas;

A $3.7 million increase attributed to residential customer growth primarily in Oklahoma;

A $5.6 million decrease due to lower sales volumes, net of weather normalization, primarily from warmer weather for the nine-month 2015 period compared with the same period last year;

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A $5.1 million decrease in line extension revenue, from commercial and industrial customers, and other revenues;

A $3.2 million decrease in rider and surcharge recoveries due to a lower ad-valorem surcharge in Kansas and the expiration of the take-or-pay rider in Oklahoma, both of which were offset by lower amortization expense; and

A $1.9 million decrease due primarily to lower transportation volumes from weather-sensitive customers in Kansas.

Operating costs for the nine-month 2015 period were $346.5

million, compared with $353.5 million for the same period last year, which primarily reflects:

A $3.5 million decrease in information technology expenses, which includes $5.9 million of costs associated with the separation from ONEOK, offset partially by costs for maintenance agreements;

A $3.5 million decrease in outside service expenses associated with pipeline maintenance activities;

A $3.0 million decrease in legal and workers’ compensation expense;

A $2.6 million decrease in ad valorem taxes;

A $2.1 million decrease in bad debt expense due primarily to warmer weather in Kansas; and

A $8.1 million increase in employee-related expenses.

Depreciation and amortization expense for the nine-month 2015 period was $98.6 million, compared with $94.0 million for the same period last year. This increase was due to an $8.3 million increase in depreciation expense from capital investments placed in service, offset partially by a $2.9 million decrease associated with the ad-valorem surcharge rider in Kansas and take-or-pay rider in Oklahoma.

Capital expenditures for the nine-month 2015 period were $199.7 million, compared with $224.6 million for the same period last year, due primarily to information technology assets acquired in 2014 due to the separation from ONEOK.

The company ended the third quarter with $53.0

million of cash and cash equivalents, no short-term borrowings and $1.0 million in letters of credit, leaving $699 million of credit available under its $700 million credit facility. The total debt-to-capitalization ratio at Sept. 30, 2015, was 40 percent.

> View earnings tables

Page 4

REGULATORY ACTIVITY

In July 2015, Oklahoma Natural Gas filed a request with the Oklahoma Corporation Commission (OCC) for an increase in base rates, reflecting system investments and operating costs necessary to maintain the safety and reliability of its natural gas distribution system. Oklahoma Natural Gas’ request, if approved, represents an increase of $50.4 million in base rates and would result in a typical residential customer paying $4.98 more per month for the utility’s natural gas service.

The hearing on the merits of the request will occur in November 2015. In accordance with Oklahoma law, the OCC has 180 days to consider Oklahoma Natural Gas’ proposed rate changes.

In March 2015, Texas Gas Service filed under the El Paso Annual Rate Review (EPARR) requesting an increase in revenues in the City of El Paso and surrounding incorporated cities. In August 2015, the incorporated cities in the El Paso service area approved an increase in revenues of $8.55 million for the El Paso service area, of which $8.0 million is applicable to the incorporated cities.

The EPARR provides for a streamlined review of Texas Gas Service’s revenue requirement on an annual basis, and is in lieu of a filing under the Gas Reliability Infrastructure Program (GRIP) statute.

GRIP is a capital-recovery mechanism that allows for a rate...


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