Filed pursuant to Rule 424(b)(5)
Registration No. 333-269966
PROSPECTUS SUPPLEMENT
(To Prospectus Dated February 23, 2023)
ONE Gas, Inc.
1,200,000 Shares of
Common Stock
The forward
seller referred to below is offering 1,200,000 shares of our common stock, par value $0.01 per share (common stock), in this offering. We entered into a forward sale agreement with Bank of America, N.A., an affiliate of BofA Securities,
Inc., whom we refer to as the forward purchaser, in respect of 1,200,000 shares of our common stock. In connection with the forward sale agreement between us and the forward purchaser, the forward purchaser or its affiliate, whom we
refer to as the forward seller, is, at our request, borrowing from third parties and selling to the underwriter an aggregate of 1,200,000 shares of our common stock that will be delivered in this offering. If the forward purchaser
determines, in its good faith and commercially reasonable judgment, that the forward seller is unable to borrow and deliver for sale to the underwriter on the anticipated closing date the number of shares of our common stock underlying the forward
sale agreement, or either it is impracticable for the forward seller to do so, or the forward seller would be unable to borrow, at a stock loan rate not greater than a specified rate, and deliver for sale to the underwriter on the anticipated
closing date such number of shares of our common stock, or if certain other conditions to the forward sellers obligations have not been satisfied, then we will issue and sell directly to the underwriter a number of shares of our common stock
equal to the number of shares that the forward seller does not borrow and deliver, and under such circumstances the number of shares of our common stock underlying the forward sale agreement will be decreased by the number of shares of our common
stock that we issue and sell to the underwriter.
We will not initially receive any proceeds from the sale of 1,200,000 shares of our common
stock sold by the forward seller to the underwriter, except in certain circumstances described in this prospectus supplement, including the last sentence of the previous paragraph. We expect to settle the forward sale agreement and receive proceeds,
subject to certain adjustments, from the sale of those shares of common stock assuming one or more future physical settlements of the forward sale agreement no later than December 31, 2024. Although we expect to settle the forward sale
agreement entirely by the full physical delivery of shares of our common stock in exchange for cash proceeds, we may elect cash settlement or net share settlement for all or a portion of our obligations under the forward sale agreement. If we elect
to cash settle or net share settle the forward sale agreement, we may not receive any proceeds from the issuance of shares, and we will instead receive or pay cash (in the case of cash settlement) or receive or deliver shares of our common stock (in
the case of net share settlement). See UNDERWRITING (CONFLICTS OF INTEREST) for a description of the forward sale agreement.
Our common stock is listed on the New York Stock Exchange (the NYSE) under the symbol OGS. The last reported sale price
of our common stock on NYSE on September 11, 2023, was $74.73 per share.
Investing in
the common stock involves risks. See RISK FACTORS beginning on page S-5 of this prospectus supplement and on page 7 of the accompanying base prospectus.
The underwriter has agreed to purchase shares of our common stock from the forward seller at a price of $73.67 per share. We expect to receive
estimated net proceeds from the sale of shares of our common stock, before expenses, of approximately $88.4 million (or approximately $101.7 million if the underwriters option to purchase additional shares of our common stock is
exercised in full, and we elect to have the forward seller borrow and deliver such shares to the underwriter as described in detail below) upon, and assuming, full physical settlement of the forward sale agreement. For purposes of calculating the
estimated net proceeds to us, we have assumed that the forward sale agreement is physically settled on the effective date of the forward sale agreement based upon the initial forward sale price of $73.67 per share. The forward sale price is subject
to adjustment pursuant to the terms of the forward sale agreement, and the actual proceeds, if any, will be calculated as described in this prospectus supplement.
The underwriter may offer shares of our common stock from time to time for sale in one or more transactions on NYSE, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at
negotiated prices. See UNDERWRITING (CONFLICTS OF INTEREST).
We have granted the underwriter an option to purchase up to an
additional 180,000 shares of our common stock at a price of $73.67 per share, exercisable within 30 days from the date of this prospectus supplement. If such option is exercised, we may, in our sole discretion, enter into an additional forward sale
agreement with the forward purchaser in respect of the number of shares of our common stock sold to the underwriter that are subject to the exercise of such option, and we currently anticipate that, if such option is exercised, we will do so. If
such option is exercised and we elect not to enter into an additional forward sale agreement for the full number of shares subject to such option, we have agreed to issue and sell directly to the underwriter the number of shares of our common stock
that are subject to the exercise of such option and are not covered by an additional forward sale agreement. Unless the context requires otherwise, the term forward sale agreement as used in this prospectus supplement includes any
additional forward sale agreement that we elect to enter into in connection with the exercise by the underwriter of its option to purchase additional shares. In the event that we enter into an additional forward sale agreement, if the forward
purchaser determines, in its good faith and commercially reasonable judgment, that the forward seller is unable to borrow and deliver for sale to the underwriter on the anticipated closing date for the exercise of such option the number of shares of
our common stock underlying the applicable forward sale agreement, or either it is impracticable for the forward seller to do so, or the forward seller would be unable to borrow, at a stock loan rate not greater than a specified rate, and deliver
for sale to the underwriter on the anticipated closing date such number of shares of our common stock, or if certain other conditions to the forward sellers obligations have not been satisfied, then we will issue and sell directly to the
underwriter a number of shares of our common stock equal to the number of shares that the forward seller does not borrow and deliver, and under such circumstances the number of shares of our common stock underlying the applicable additional forward
sale agreement will be decreased by the number of shares of our common stock that we issue and sell to the underwriter.
Neither the
Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus supplement or the accompanying base prospectus is truthful or complete. Any representation to the
contrary is a criminal offense.
The underwriter expects to deliver the shares on or about September 14, 2023.
BofA Securities
The date of
this prospectus supplement is September 11, 2023.