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OGE Energy Corp.
OGE Energy Corp. reports second quarter results



Aug 9, 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 (NYSE: ENBL), today (8/3) reported earnings of $0.52 per diluted share for the three months ended June 30, 2017, compared to $0.35 per diluted share for the second quarter of 2016.

  • OG&E, a regulated electric utility, contributed earnings of $0.43 per share in the second quarter, compared with earnings of $0.36 per share in the second quarter last year.
  • OGE Energy's interest in Enable Midstream contributed earnings of $0.09 per share compared with breakeven results in the year-ago quarter.
  • The holding company posted breakeven results compared with a loss of $0.01 per share in 2016.

"Our Q2 results are indicative of our resolve to embrace and overcome challenges. Each day, we're adjusting, adapting and moving forward. And, despite some challenges, we're on plan for 2017," said OGE Energy Corp. Chairman, President and CEO Sean Trauschke. "I couldn't be more proud of the focus and determination of our team to press forward and create value for those we serve."

Discussion of Second Quarter 2017

OGE Energy's net income was approximately $105 million in the second quarter, compared to approximately $72 million in the year-ago quarter.

OG&E's net income was approximately $86 million in the second quarter, compared to approximately $72 million in the comparable quarter last year. The primary driver for the increase in net income was lower operating expenses which included lower depreciation expense related to the reduction in depreciation rates as directed in the Oklahoma Corporation Commission's final order.  Gross margin increased due to customer growth and higher transmission revenues despite the impact of mild weather.

Natural Gas Midstream Operations contributed net income to OGE Energy Corp. of approximately $18 million for the second quarter of 2017 compared to breakeven results for the same period in 2016.  The increase is due in part to higher volumes across all business segments driven by contract execution and significant rig activity.  Enable has also increased their distribution coverage quarter over quarter.  In addition, Enable Midstream issued cash distributions to OGE of approximately $35 million in each of the second quarters of 2017 and 2016.

2017 Earnings Outlook

The Company's 2017 OG&E earnings guidance remains unchanged 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 also remains unchanged and is 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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