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OGE Energy Corp.
OGE Energy Corp. reports first quarter results



May 5, 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 $0.18 per diluted share for the three months ended March 31, 2017, compared to $0.13 per diluted share for the first quarter of 2016.

OG&E, a regulated electric utility, contributed earnings of $0.08 per share in the first quarter, compared with earnings of $0.03 per share in the first quarter last year. OGE Energy's interest in the natural gas midstream operations contributed earnings of $0.10 per share compared with earnings of $0.09 per share in the year-ago quarter. The holding company posted breakeven results compared with earnings of $0.01 per share in 2016.

"Despite regulatory and weather challenges, the utility is on plan," said OGE Energy Corp. Chairman, President and CEO Sean Trauschke. "Each day, we're adjusting, adapting and moving forward. I could not be more proud of the focus and determination of our team to press forward and create value for those we serve."

Discussion of First Quarter 2017

OGE Energy's net income was $36 million in the first quarter, compared to approximately $25 million in the year-ago quarter.

OG&E's net income was approximately $16 million in the first quarter, compared to approximately $6 million in the comparable quarter last year. The primary driver for the increase in net income was the lower depreciation expense related to the reduction in depreciation rates as directed in the Oklahoma Corporation Commission's final order. These increases were partially offset by lower gross margin due in part to milder than normal weather.

Natural Gas Midstream Operations contributed net income to OGE Energy Corp. of $20 million for the first quarter of 2017 compared to $18 million for the same period in 2016. The increase is primarily due to increased gross margin and cost controlling measures in the gathering and processing business segment.  In addition, Enable Midstream issued cash distributions to OGE of approximately $35 million in each of the first quarters of 2017 and 2016.

2017 Earnings Outlook

The Company projects 2017 OG&E earnings guidance to be at the low end of the earnings range of $1.58 to $1.70 per average diluted share based on the Oklahoma Corporation Commission rate order. OGE Energy consolidated earnings guidance for 2017 is now projected to be at the lower end of the earnings range of $1.93 to $2.09 per average diluted share. More information regarding the Company's 2017 earnings guidance is contained in the Company's 2016 Form 10-K and Form 10-Q for the quarter ended March 31, 2017 as 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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