Texas Gas Service

What Texas Gas Service does

Texas Gas Service is a regulated natural gas distribution utility headquartered in Austin, Texas, and a division of ONE Gas, Inc. (NYSE: OGS). The company delivers natural gas through approximately 11,600 miles of distribution mains and transmission pipelines to roughly 711,000 residential, commercial, industrial, and public-authority customers across 100 Texas communities, making it the third-largest natural gas distributor in the state by customer count. Founded in 1906 and operating continuously for 118+ years, Texas Gas Service maintains a 30-minute average emergency response time and runs federally mandated Pipeline Integrity Management and Excess Flow Valve programs.

The business operates on a regulated utility model with revenue from monthly customer charges, volumetric delivery charges, and a pass-through Cost of Gas component, supplemented by interim rate adjustments such as GRIP and a forthcoming securitization charge tied to Winter Storm Uri recovery. Customer segments are served through dedicated motions: direct-to-consumer self-service (web, mobile app, call center 800-700-2443), builder/developer services via the Builders Hub portal, an economic development team for industrial and large commercial prospects, and transportation services for customers purchasing gas from third-party suppliers. Ancillary revenue includes referral fees from the Oncourse Home Solutions home protection plans, LIHEAP-funded assistance administration, and rebates historically offered through an Energy Efficiency Program (now expired).

Commercially, Texas Gas Service is expanding its surface area beyond core distribution with Business Natural Gas Solutions (combined heat and power, microgrids, CNG, RNG, backup generation), a Residential Generator Program, and research participation in the GTI Energy H2@Scale hydrogen project. Its 11,600-mile pipeline footprint, rate-regulated revenue model, and exclusive service territories provide a defensive moat, while its growth levers are concentrated in new construction attach, industrial/transportation customer wins, and emerging clean-energy adjacencies.

Name

Texas Gas Service

Legal name

Texas Gas Service (a division of ONE Gas, Inc.)

Website

https://texasgasservice.com

Company type

Public

Founded year

1906

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Texas Gas Service is a regulated natural gas distribution utility and division of ONE Gas, Inc. (NYSE: OGS), serving approximately 711,000 residential, commercial, industrial, and government customers across 100 Texas communities via 11,600 miles of pipeline.

Ownership category

akta.pro rank

Product category

Natural Gas Distribution

NAICS

Natural Gas Distribution (2212), Natural Gas Distribution (22121), Pipeline Transportation of Natural Gas (486210)

SIC

Natural Gas Distribution (4924), Natural Gas Transmisison & Distribution (4923)

akta.pro primary industry

Local Distribution Company (LDC) Natural Gas Distribution Utilities (TLAGADAA)

akta.pro secondary industries

Gas Distribution Operations (Day-to-Day Field & System Operations) (EUAJAAAB), Gas Mains (Distribution Pipelines) (EUAJABAA), Service Line Maintenance & Repair (Customer Laterals) (EUAJAMAC)

Keywords

• Natural gas distribution
• Gas utility services
• Residential gas delivery
• Commercial gas solutions
• Pipeline safety

Headquarters

HQ city

Kansas City

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Supply Chain, Infrastructure, Personnel, Technology or R&D, Others

Revenue model

1. Natural Gas Delivery Services: Regulated revenue from delivering natural gas to residential, commercial, and industrial customers. Includes customer charges, delivery charges, and volumetric charges based on consumption. Rates regulated by cities and Texas Railroad Commission.
2. Cost of Gas (COG): Pass-through of natural gas procurement costs. Company purchases natural gas through diverse supply contracts and competitive bidding; costs are passed through to customers without markup. Includes storage and transportation costs.
3. GRIP (Gas Reliability Infrastructure Program): Interim rate adjustment to recover investment in distribution system infrastructure, minimizing size of rate increases following formal rate cases.
4. Home Protection Plans: Optional home warranty protection plans offered through Oncourse Home Solutions for customer-owned natural gas lines, HVAC, plumbing, electrical, water/sewer lines. Company earns referral/administrative fees.

Pricing tiers

Go-to-market motion3 records

Distribution channels6 records

Marketing channels8 records

Core offering

Texas Gas Service distributes natural gas to approximately 711,000 residential, commercial, and industrial customers across 100 Texas communities through 11,600 miles of distribution mains and transmission pipelines. The company, a division of ONE Gas, Inc. (NYSE: OGS), provides regulated gas delivery services along with related offerings including builder/developer new-connection services, transportation services for large-volume customers, business natural gas solutions (CNG, RNG, CHP, microgrids), and customer home protection plans via Oncourse Home Solutions.

Product overview

Texas Gas Service operates as a natural gas distribution utility, functioning as a single integrated service rather than a modular software platform. The company delivers natural gas to approximately 711,000 residential, commercial, and industrial customers across 100 Texas communities through its core distribution infrastructure. Supporting the core gas delivery service, Texas Gas Service offers complementary programs including the Customer Home Protection Program (via Oncourse Home Solutions) for warranty coverage, Assistance Programs (LIHEAP, Share The Warmth) for financial hardship support, Billing and Payment Services for account management, Construction Services accessible via a Builders Hub portal for new connections and relocations, Business Natural Gas Solutions (including backup generation, CNG, CHP, microgrids), Transportation Customer Services for third-party supplier arrangements, Pipeline Safety Services, and a Mobile Application for customer convenience. The Energy Efficiency Program has expired and rebates are no longer available.

Differentiator

Problem solved

Functional benefit

Brands

• Share The Warmth: A program that helps families in immediate financial emergencies pay their natural gas bills, funded by donations from customers and Texas Gas Service.
• Customer Home Protection Program

Products and services

• Natural Gas Distribution Services Safe, clean, and reliable natural gas delivery to residential, commercial, and industrial customers across 100 Texas communities, serving approximately 711,000 customers via 11,600 miles of distribution mains and transmission pipelines.
• Customer Home Protection Program Optional home warranty protection plans offered through Oncourse Home Solutions covering customer-owned natural gas lines, HVAC, electrical, plumbing, water heaters, and surge protection for homeowners and renters.
• Business Natural Gas Solutions

Quantifiable outcome

• Average emergency response time of approximately 30 minutes for gas emergencies
• +3 more outcomes

Named customers6 records

Segments7 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Eleven partnerships are on record, tiered core, innovation, community support, safety and community.

• Oncourse Home SolutionscoreChannel Partner/ Reseller/ Distributor · 1 January 2021Oncourse Home Solutions offers optional home warranty protection plans to Texas Gas Service customers, covering customer-owned natural gas lines, HVAC, electrical, plumbing, and water/sewer lines. Plans are billed through the utility bill. Oncourse has provided protection for 1.8 million homeowners nationwide and maintains A+ BBB rating.
• GTI Energy (H2@Scale Project)innovationStrategic or Co-development PartnerTexas Gas Service is participating in the H2@Scale project with GTI Energy in Austin to understand hydrogen's potential national and regional benefits for energy storage, resiliency, and emissions reduction. This collaboration positions the company in emerging clean energy technology research.
• Travis County Comprehensive Energy Assistance Program (CEAP)community supportOthersPartnership with Travis County to distribute LIHEAP funds for utility assistance to eligible households in Central Texas service area.
• Panhandle Community Servicescommunity supportOthersLIHEAP fund distribution partner serving Borger and surrounding Panhandle communities.
• Community Action Inc. of Central Texascommunity supportOthersLIHEAP fund distribution partner serving Central Texas including Lockhart and Luling communities.
• Project BRAVO (El Paso)community supportOthersLIHEAP fund distribution partner serving El Paso area customers through Share The Warmth program.
• Greater East Texas Community Action Program (GETCAP)community supportOthersLIHEAP fund distribution partner serving Port Arthur, Jefferson, and Beaumont areas.
• Galveston County Community Action Councilcommunity supportOthersLIHEAP fund distribution partner serving Galveston County with rental and utility assistance.
• West Texas Opportunities, Inc.community supportOthersLIHEAP fund distribution partner serving Permian Basin area including Pecos, Monahan, and McCamey.
• Texas 811safetyStrategic or Co-development PartnerStatewide one-call system that notifies underground utility line owners to mark facilities before digging projects, essential for pipeline safety and damage prevention.
• Harlingen Neighborhood Food PantrycommunityOthersTexas Gas Service supported the food pantry with a $10,000 grant. The pantry distributes approximately 70,000 pounds of food and serves nearly 800 families monthly.

Scale indicators9 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Atmos Energy: Largest natural gas distribution company in Texas and one of the largest LDCs in the U.S. Direct peer: also a regulated natural gas utility serving Texas customers with overlapping service territories and the same Texas Railroad Commission regulator.
• New Jersey Resources: Regulated natural gas distribution utility (New Jersey Natural Gas) plus clean energy ventures; comparable LDC with similar customer programs, energy-efficiency offerings, and weather-normalization billing mechanisms.
• Spire Inc. Publicly traded natural gas distribution and pipeline company serving Missouri, Alabama, and Mississippi; comparable as a multi-state regulated LDC with similar customer-mix, weather exposure, and rate-base economics.
• CenterPoint Energy: Houston-based regulated utility with a substantial natural gas distribution business in Texas, competing for the same commercial, industrial, and residential customers under the same state regulatory framework.
• Northwest Natural Gas: Pacific Northwest regulated natural gas LDC with similar residential and commercial customer mix, weather-sensitive demand, and pipeline integrity programs comparable to Texas Gas Service.
• Southwest Gas Holdings: Natural gas distribution utility serving Arizona, Nevada, and parts of California; similar LDC business model, regulated rate base, and growing southwestern territory comparable to Texas Gas Service's profile.
• Chesapeake Utilities: Multi-state natural gas distribution and transmission utility operating across the Mid-Atlantic and Southeast; comparable regulated LDC operations with overlapping growth focus on RNG and CNG solutions.
• South Jersey Industries: Regulated natural gas LDC in southern New Jersey with growing RNG and clean-energy initiatives, comparable in regulated rate-base economics and transition-strategy posture to Texas Gas Service.

Broad incumbents

• National Grid (U.S. gas business): Large multi-national utility with a U.S. natural gas distribution business serving the Northeast; comparable as a broad incumbent operating regulated LDCs at scale, though serving a different geography.
• ONE Gas, Inc. NYSE-listed parent company (OGS) of which Texas Gas Service is a division; operates sibling LDCs in Oklahoma and Kansas with the same regulated business model, providing the closest apples-to-apples operational and financial benchmark.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/texasgasservice
• YouTubeyoutube.com/channel/UCBKr-wORiQv2iSpJYexJSsw
• Facebookfacebook.com/TexasGasService
• LinkedInlinkedin.com/company/texas-gas-service

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Texas Gas Service