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OGE Energy Corp.
OGE Energy Corp. reports earnings for 2016 and outlook for 2017



February 24, 2017

OGE Energy Corp. (NYSE: OGE), the parent company of Oklahoma Gas and Electric Company ("OG&E"), and holder of 25.7 percent limited partner interest and 50 percent general partner interest in Enable Midstream Partners LP,  reported earnings of $1.69 per average diluted share in 2016, compared with earnings of $1.36 per average diluted share in 2015.  

In 2016, OG&E, a regulated electric utility, reported net income of $284 million and contributed $1.42 per diluted share, compared with $269 million, or $1.35 per diluted share in 2015.  Enable Midstream issued cash distributions to OGE of approximately $141 million and contributed earnings of $53 million, or $0.27 per diluted share in 2016, compared to earnings of $9 million, or $0.05 per diluted share in 2015. The holding company posted breakeven results in 2016, compared to a loss of $0.04 per diluted share in 2015.

"I'm pleased with the performance of OGE and Enable despite a challenging environment. I am proud of the execution and perseverance of our members in 2016," said OGE Energy Corp. Chairman, President and CEO Sean Trauschke, "And both of our businesses are well positioned for continued success."

Fourth Quarter results

For the three months ended Dec. 31, 2016, OGE Energy reported earnings of $0.29 per diluted share, compared with $0.15 per diluted share in the fourth quarter of 2015.  The increase is primarily due to higher transmission revenues and more favorable weather at the utility.

Discussion of 2016 results

OG&E reported gross margin of $1.4 billion in 2016, which was approximately $47 million higher than 2015. The increase in gross margin for the year was due in part from higher transmission revenues and more favorable weather as compared to 2015. Partially offsetting higher gross margin were additional professional services.  As a result, OG&E's net income increased from $269 million in 2015 to $284 million in 2016.

Natural Gas Midstream Operations contributed earnings to OGE of approximately $53 million for 2016 compared to $9 million for 2015.  Higher earnings were primarily due to goodwill and asset impairments recorded by Enable in 2015 of approximately $114 million pretax, or $0.35 per share after tax.  Higher earnings were partially offset by lower revenues associated with lower natural gas and lower natural gas liquids prices.

2017 Outlook

OG&E is projected to earn $1.58 to $1.70 per average diluted share.  The Company projects the earnings contribution from its ownership interest in Enable Midstream to be approximately $0.35 to $0.39 per average diluted share.  Additionally, OGE Energy consolidated earnings guidance for 2017 is $1.93 to $2.09 per average diluted share.  The guidance assumes approximately 200 million average diluted shares outstanding and normal weather for the year.  More information regarding the Company's 2017 earnings guidance and the Company's 2016 financial results is contained in the Company's Form 10-K filed with the Securities and Exchange Commission.


Click here to read the full press release.
 

For more information:

Organization:
OGE Energy Corp.
www.oge.com


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