The company procures natural gas through competitive bidding from processors, marketers, and producers to maintain a reliable and competitively priced supply. Its sourcing strategy includes multiple production areas and suppliers to mitigate risks such as physical interruptions, supplier financial difficulties, natural disasters, and other force majeure events. The company implements curtailment provisions to manage supply shortages and adheres to regulatory guidelines during critical supply disruptions. Price volatility is managed using natural gas storage, fixed-price contracts, and financial derivatives authorized by the OCC, KCC, and Texas municipalities. As of December 31, 2025, the company had 60.8 billion cubic feet (Bcf) of natural gas storage capacity under contract with terms ranging from one to ten years, and a daily withdrawal capacity of approximately 1.8 Bcf, supporting winter demand and peak delivery reliability. Approximately 35% of winter natural gas supply for sales customers is expected to come from storage. Demand is seasonal, with higher sales in winter due to heating requirements.
One Gas Inc's Comment on Supply Chain
The company procures natural gas through competitive bidding from processors, marketers, and producers to maintain a reliable and competitively priced supply. Its sourcing strategy includes multiple production areas and suppliers to mitigate risks such as physical interruptions, supplier financial difficulties, natural disasters, and other force majeure events. The company implements curtailment provisions to manage supply shortages and adheres to regulatory guidelines during critical supply disruptions. Price volatility is managed using natural gas storage, fixed-price contracts, and financial derivatives authorized by the OCC, KCC, and Texas municipalities. As of December 31, 2025, the company had 60.8 billion cubic feet (Bcf) of natural gas storage capacity under contract with terms ranging from one to ten years, and a daily withdrawal capacity of approximately 1.8 Bcf, supporting winter demand and peak delivery reliability. Approximately 35% of winter natural gas supply for sales customers is expected to come from storage. Demand is seasonal, with higher sales in winter due to heating requirements.
Sources:
One Gas Inc 's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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