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BTIG Sees ONE Gas Growth From Large Load Power Demand
BTIG initiated ONE Gas as a Buy, betting on large load demand from data centers and industrial plants for baseload and backup natural gas power. The regulated utility’s pipeline of projects may drive a re-rating.
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BTIG Research initiated coverage of ONE Gas with a Buy rating, pointing to rising demand from large customers who need natural gas for baseload and backup power. The firm sees that as a growth opportunity for the regulated gas utility.
The thesis lands at a time when data center operators, industrial plants, and commercial campuses are hunting for reliable power that does not depend on the grid. Natural gas has become the default fuel for behind-the-meter generation and direct industrial use. That trend is forcing regulated gas distributors to rethink their growth trajectories. BTIG’s call suggests ONE Gas is positioned to capture a slice of that wave.
ONE Gas runs a network of roughly 48,000 miles of distribution and transmission pipeline across Oklahoma, Kansas, and Texas. Those states have seen outsized data center and industrial investment, partly because of cheap land, available power, and business-friendly permitting. The utility’s core business has historically been residential and commercial heating. Large load customers represent a shift toward higher-margin, higher-volume demand that can lift rate base growth without the same weather seasonality.