Business Description

OUR BUSINESS ONE Gas, Inc. is incorporated under the laws of the state of Oklahoma. Our common stock is listed on the NYSE and the NYSE Texas under the trading symbol “OGS,” and is included in the S&P MidCap 400 Index. We are a 100-percent regulated natural gas distribution utility, headquartered in Tulsa, Oklahoma, and one of the largest publicly traded natural gas utilities in the United States. We are the successor to the company founded in 1906 as Oklahoma Natural Gas Company, which became ONEOK, Inc. (NYSE: OKE) in 1980. On January 31, 2014, ONE Gas officially separated from ONEOK, Inc. We provide natural gas distribution services to approximately 2.3 million customers. We are the largest natural gas distributor in Oklahoma and Kansas and the third largest in Texas, in terms of customers. We primarily serve residential, commercial, and transportation customers in all three states. Our largest natural gas distribution markets, in terms of customers, are Oklahoma City and Tulsa, Oklahoma; Kansas City, Wichita, and Topeka, Kansas; and Austin and El Paso, Texas. Our three divisions, Oklahoma Natural Gas, Kansas Gas Service, and Texas Gas Service, distribute natural gas to approximately 89 percent, 72 percent, and 13 percent of the natural gas distribution customers in Oklahoma, Kansas, and Texas, respectively. OUR STRATEGY Our mission is to deliver natural gas for a better tomorrow. Our business strategy is focused on: • Engaged and High-performing Workforce - Our employees are the foundation of the Company. Our success begins with a culture built on our core values and a commitment to engaging people to do their best work in an inclusive environment. Every employee makes a difference and contributes to our success. • Safe Operations - We are committed, first and foremost, to pursuing a zero-incident and 100-percent compliance safety culture. We deploy a variety of operational and damage prevention procedures and technologies to monitor, protect, and maintain our natural gas distribution system. Our focus on safety also extends to protecting our information systems from cyber intrusions. • Capital Investments - A significant portion of our capital spending is focused on the safety, integrity, and reliability of our natural gas distribution system in a way that serves our customers’ energy needs responsibly and sustainably. We invest capital to meet growing customer demand, support economic development, and manage our technology needs. • Serving Customers - We provide safe, reliable, and affordable energy to meet our customers’ evolving energy needs. We manage our resources effectively and leverage technology solutions to enhance operational efficiency. • Delivering Foundational Energy - Our assets are essential to our customers and the integrated energy system. Natural gas and its applications as a foundational energy source play a crucial role in meeting growing energy needs and complementing renewables and other energy sources. REGULATORY OVERVIEW We are subject to the regulation and oversight of the state and local regulatory authorities of the territories in which we operate. Rates and charges for natural gas distribution services are established by the OCC for Oklahoma Natural Gas and by the KCC for Kansas Gas Service. Rates and charges in the incorporated cities of our service areas in Texas are established by those cities, which have primary jurisdiction. Rates and charges in the unincorporated areas of our service territory in Texas are established by the RRC. All appellate matters in Texas are subject to regulatory oversight by the RRC. These regulatory authorities have the responsibility of ensuring that the utilities under their jurisdiction provide safe and reliable service at a reasonable cost, while providing utilities the opportunity to earn a fair and reasonable return on their investments. Generally, our rates and charges are established in rate case proceedings. Regulatory authorities may also approve mechanisms that allow for adjustments between rate cases for investments made or specific costs incurred. Due to the nature of the regulatory process, there is an inherent lag between the time that we make investments or incur additional costs and the setting of new rates and/or charges to recover those investments or costs.…