On February 22, 2021, we entered into the ONE Gas 2021 Term Loan Facility as part of the financing of our natural gas purchases in order to provide sufficient liquidity to satisfy our obligations as a result of Winter Storm Uri.

See "Regulatory Activities," "Liquidity and Capital Resources," and Note 3 of the Notes to Consolidated Financial Statements in this Quarterly Report for additional discussion of the effects of Winter Storm Uri on us.

COVID-19 - Throughout the COVID-19 pandemic, we have continued to provide essential services to our customers. We have implemented a comprehensive set of policies, procedures and guidelines to protect the safety of our employees, customers and communities.

On June 30, 2022, Texas Gas Service filed a rate case seeking to consolidate its West Texas, North Texas and Borger/Skellytown service areas into a single West-North service area and requesting a rate increase of $13.0 million. If approved, new rates are expected to take effect in the first quarter of 2023.

Central-Gulf Service Area - In February 2022, Texas Gas Service made GRIP filings for all customers in the Central-Gulf service area, requesting a $9.1 million increase effective in June 2022. All municipalities, and the RRC, approved the new rates or allowed them to take effect with no action.

FINANCIAL RESULTS AND OPERATING INFORMATION

The following table sets forth certain selected financial results for our operations for the periods indicated:

Transportation revenues represent revenue from contracts with customers through implied contracts established by our tariffs and rates approved by the regulatory authorities, as well as tariff-based negotiated contracts.

Selected Operating Information - The following tables set forth certain selected operating information for the periods indicated:

The following table reflects total volumes delivered, excluding the effects of WNA mechanisms on sales volumes:

The impact of weather on residential and commercial natural gas sales is mitigated by WNA mechanisms in all jurisdictions.

The following table sets forth the HDDs by state for the periods indicated:

Normal HDDs are established through rate proceedings in each of our jurisdictions for use primarily in weather normalization billing calculations. See further discussion on weather normalization in our Regulatory Overview section in Part 1, Item 1, "Business," of our Annual Report. Normal HDDs disclosed above are based on:

Actual HDDs are based on the quarter-to-date weighted average of:

•11 weather stations and customers by month for Oklahoma; •3 weather stations and customers by month for Kansas; and •9 weather stations and natural gas distribution sales volumes by service area for Texas.

At June 30, 2022, we had $1.2 million in letters of credit issued and no borrowings under the ONE Gas Credit Agreement, with $998.8 million of remaining credit, which is available to repay any of our commercial paper borrowings.

Statements in this Quarterly Report, to call the outstanding senior notes due March 2023 and a portion of the senior notes due March 2024.

At June 30, 2022, our long-term debt-to-capital ratio was 60 percent.

Credit Ratings - Our credit ratings as of June 30, 2022, were:

The following table sets forth the changes in cash flows by operating, investing and financing activities for the periods indicated:

Cash and cash equivalents at end of period $ 7.4 $ 209.2

Operating cash flows were higher for the six months ended June 30, 2022, compared with the prior period, due primarily to the increased natural gas purchases in the prior period resulting from Winter Storm Uri, which were deferred and included in regulatory assets. See Note 3 of the Notes to Consolidated Financial Statements in this Quarterly Report for additional information.

ENVIRONMENTAL, SAFETY AND REGULATORY MATTERS

COVID-19 - See "Recent Developments," as well as Notes 3 and 12 of the Notes to Consolidated Financial Statements in this Quarterly Report for additional discussion regarding the effects of COVID-19 on us.

IMPACT OF NEW ACCOUNTING STANDARDS

Information about the impact of new accounting standards, if any, is included in Note 1 of the Notes to Consolidated Financial Statements in this Quarterly Report.

ESTIMATES AND CRITICAL ACCOUNTING POLICIES

Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this Quarterly Report identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast,"

"guidance," "could," "may," "continue," "might," "potential," "scheduled," "likely," and other words and terms of similar meaning.

© Edgar Online, source Glimpses