One Gas Inc (OGS)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	2,160,400	2,661,740	3,683,380	1,582,430	1,286,060
Total stockholders’ equity	US$ in thousands	2,765,880	2,584,430	2,349,530	2,233,310	2,129,390
Debt-to-capital ratio		0.44	0.51	0.61	0.41	0.38

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,160,400K ÷ ($2,160,400K + $2,765,880K)
= 0.44

The debt-to-capital ratio of ONE Gas Inc has fluctuated over the past five years. In 2023, the ratio stands at 0.52, indicating that 52% of the company's capital structure is funded by debt. This represents a decrease from the ratio of 0.56 in 2022. The downward trend in the debt-to-capital ratio suggests that ONE Gas Inc has been reducing its reliance on debt financing relative to its total capital base. It is worth noting that in 2021, the ratio peaked at 0.64, reflecting a higher level of debt compared to the other years analyzed. Overall, the decreasing trend in the debt-to-capital ratio may signify improved financial stability and lower financial risk for the company, as it indicates a stronger equity base relative to debt obligations.