ONE Gas, Inc.OGS

ONE Gas, Inc. PP&E Disclosure

10-KFiled Feb 22, 20241 min read
PROPERTY, PLANT AND EQUIPMENT
The following table sets forth our property, plant and equipment by property type, for the periods indicated:
December 31,December 31,
20232022
(Thousands of dollars)
Natural gas distribution pipelines and related equipment$6,716,074 $6,240,236 
Natural gas transmission pipelines and related equipment713,505 661,379 
General plant and other907,946 782,870 
Construction work in process131,442 150,072 
Property, plant and equipment8,468,967 7,834,557 
Accumulated depreciation and amortization(2,333,755)(2,205,717)
Net property, plant and equipment$6,135,212 $5,628,840 

We compute depreciation expense by applying composite, straight-line rates of approximately 2.5 percent to 3.5 percent as approved by various regulatory authorities.

We recorded capitalized interest of $5.7 million, $4.5 million and $4.2 million for the years ended December 31, 2023, 2022 and 2021, respectively. We incurred liabilities for construction work in process that had not been paid at December 31, 2023, 2022 and 2021 of $36.2 million, $28.6 million and $25.6 million, respectively. Such amounts are not included in capital expenditures or in the change of working capital items on our consolidated statements of cash flows.

Historical Timeline

Fiscal YearFiled
2023Feb 22, 2024Showing above
2022Feb 23, 2023
2021Feb 24, 2022
2020Feb 26, 2021
2019Feb 20, 2020
2018Feb 20, 2019
2017Feb 22, 2018
2016Feb 23, 2017
2015Feb 18, 2016

About PP&E Disclosures

The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.

Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.

Other Available Disclosures

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