OKLAHOMA
CITY, May 4, 2023 /PRNewswire/ -- OGE
Energy Corp. (NYSE: OGE), the parent company of Oklahoma Gas and
Electric Company ("OG&E"), today reported earnings of
$0.19 per diluted share during the
three months that ended March 31,
2023, compared to $1.39 per
diluted share in the same period 2022. Earnings for the first
quarter of 2022 included $1.15 per
diluted share from natural gas midstream operations, which OGE
Energy fully exited in 2022 through the sale of all Energy Transfer
units. Beginning in 2023, OGE Energy no longer has a Natural Gas
Midstream Operations reporting segment.
- OG&E, a regulated electric company, contributed earnings of
$0.20 per diluted share in the first
quarter, compared to earnings of $0.19 per diluted share in the first quarter last
year.
- Other operations, which includes the holding company,
contributed a loss of $0.01 per
diluted share compared to earnings of $0.05 per diluted share in the first quarter
2022.
"Strong execution delivered a solid first quarter for the
company as we continue to advance our reliability and resiliency
plans with a relentless focus on affordability," said Sean Trauschke, OGE Energy Corp. Chairman,
President, and CEO. "Our service area and customer base
continues to grow and we remain laser-focused on our culture of
operational excellence that provides our customers and communities
the power they need to live, work and play."
First Quarter 2023
OG&E contributed net income of
$39.8 million, or $0.20 per diluted share, in the first quarter
compared to $39.0 million, or
$0.19 per diluted share, in the same
period 2022. The increase in net income was primarily due to higher
operating revenues related to the recovery of capital investments,
partially offset by an increase in other operation and maintenance
expense and higher depreciation expense.
Other Operations resulted in a loss of
$1.5 million, or $0.01 per diluted share, in the first quarter
compared to earnings of $10.4
million, or $0.05 per diluted
share, in the same period 2022. The decrease in net income was
primarily due to a 2022 consolidating tax benefit related to OGE
Energy's former investment in Energy Transfer during the first
quarter 2022 that reversed over the course of the year.
OGE Energy's net income was $38.3 million or $0.19 per diluted share in the first quarter,
compared to earnings of $279.5
million or $1.39 per diluted
share in the year-ago quarter. Earnings for the first quarter of
2022 included $1.15 per diluted share
from natural gas midstream operations, which OGE Energy fully
exited in 2022 through the sale of all Energy Transfer units.
2023 Outlook
OGE Energy's 2023 earnings guidance
remains unchanged and is projected to be between $387 million to $416
million, or $1.93 to
$2.07 per average diluted share, with
a midpoint of $402 million, or
$2.00 per average diluted share.
OG&E is projected to earn approximately $400 million to $421
million, or $1.99 to
$2.09 per average diluted share, with
a midpoint of $411 million, or
$2.04 per average diluted share.
Other Operations (primarily Holding Company) projects a loss of
$5 million to $13 million, or $0.02 to $0.06 per
average diluted share, with a midpoint of a loss of $9 million, or $0.04 per average diluted share. The
guidance assumes, among other things, approximately 201 million
average diluted shares outstanding and normal weather for the year.
OG&E has significant seasonality in its earnings due to weather
on a year over year basis.
See OGE Energy's 2022 Form 10-K for other key factors and
assumptions underlying its 2023 guidance.
Conference Call Webcast
OGE Energy Corp. will host a
conference call for discussion of the results on Thursday, May 4, 2023, at 8 a.m. CDT. The conference will be available
through the Investor Center at www.oge.com.
OGE Energy Corp. is the parent company of OG&E, a regulated
electric company with approximately 890,000 customers in
Oklahoma and western Arkansas.
Some of the matters discussed in this news release may contain
forward-looking statements that are subject to certain risks,
uncertainties, and assumptions. Such forward-looking statements are
intended to be identified in this document by the words
"anticipate," "believe," "estimate," "expect," "forecast,"
"intend," "objective," "plan," "possible," "potential," "project,"
"target" and similar expressions. Actual results may vary
materially. Factors that could cause actual results to differ
materially from the forward-looking statements include, but are not
limited to: general economic conditions, including the availability
of credit, access to existing lines of credit, access to the
commercial paper markets, actions of rating agencies and inflation
rates, and their impact on capital expenditures; the ability of the
Company and its subsidiary to access the capital markets and obtain
financing on favorable terms, as well as inflation rates and
monetary fluctuations; the ability to obtain timely and sufficient
rate relief to allow for recovery of items such as capital
expenditures, fuel and purchased power costs, operating costs,
transmission costs and deferred expenditures; prices and
availability of electricity, coal and natural gas; competitive
factors, including the extent and timing of the entry of additional
competition in the markets served by the Company, potentially
through deregulation; the impact on demand for services resulting
from cost competitive advances in technology, such as distributed
electricity generation and customer energy efficiency programs;
technological developments, changing markets and other factors that
result in competitive disadvantages and create the potential for
impairment of existing assets; factors affecting utility operations
such as unusual weather conditions; catastrophic weather-related
damage; unscheduled generation outages, unusual maintenance or
repairs; unanticipated changes to fossil fuel, natural gas or coal
supply costs or availability due to higher demand, shortages,
transportation problems or other developments; environmental
incidents; or electric transmission or gas pipeline system
constraints; availability and prices of raw materials and equipment
for current and future construction projects; the effect of
retroactive pricing of transactions in the SPP markets or
adjustments in market pricing mechanisms by the SPP; federal or
state legislation and regulatory decisions and initiatives that
affect cost and investment recovery, have an impact on rate
structures or affect the speed and degree to which competition
enters the Company's markets; environmental laws, safety laws or
other regulations that may impact the cost of operations, restrict
or change the way the Company's facilities are operated or result
in stranded assets; changes in accounting standards, rules or
guidelines; the discontinuance of accounting principles for certain
types of rate-regulated activities; the cost of protecting assets
against, or damage due to, terrorism or cyberattacks, including
losing control of our assets and potential ransoms, and other
catastrophic events; creditworthiness of suppliers, customers and
other contractual parties, including large, new customers from
emerging industries such as cryptocurrency; social
attitudes regarding the electric utility and power industries;
identification of suitable investment opportunities to enhance
shareholder returns and achieve long-term financial objectives
through business acquisitions and divestitures; increased pension
and healthcare costs; national and global events that could
adversely affect and/or exacerbate macroeconomic conditions,
including inflationary pressures, rising interest rates, supply
chain disruptions, economic recessions, pandemic health events and
uncertainty surrounding continued hostilities or sustained military
campaigns, and their collateral consequences; costs and other
effects of legal and administrative proceedings, settlements,
investigations, claims and matters and other risk factors listed in
the reports filed by the Company with the Securities and Exchange
Commission, including those listed in the Company's Form 10-K for
the year ended December 31, 2022.
OGE ENERGY
CORP.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
(In millions,
except per share data)
|
|
2023
|
|
2022
|
OPERATING
REVENUES
|
|
|
|
|
Revenues from contracts
with customers
|
|
$
544.6
|
|
$
578.1
|
Other
revenues
|
|
12.6
|
|
11.2
|
Operating
revenues
|
|
557.2
|
|
589.3
|
FUEL, PURCHASED POWER
AND DIRECT TRANSMISSION EXPENSE
|
|
200.6
|
|
255.7
|
OPERATING
EXPENSES
|
|
|
|
|
Other operation and maintenance
|
|
130.4
|
|
115.0
|
Depreciation and amortization
|
|
121.2
|
|
107.4
|
Taxes other than income
|
|
28.5
|
|
28.1
|
Operating
expenses
|
|
280.1
|
|
250.5
|
OPERATING INCOME
|
|
76.5
|
|
83.1
|
OTHER INCOME (EXPENSE)
|
|
|
|
|
Allowance for equity funds used during
construction
|
|
4.5
|
|
1.3
|
Other net periodic
benefit income (expense)
|
|
1.5
|
|
(9.4)
|
Gain on equity
securities
|
|
—
|
|
282.3
|
Other income
|
|
16.9
|
|
22.6
|
Other expense
|
|
(6.5)
|
|
(5.2)
|
Net other income
|
|
16.4
|
|
291.6
|
INTEREST EXPENSE
|
|
|
|
|
Interest on long-term debt
|
|
48.1
|
|
39.4
|
Allowance for borrowed funds used during
construction
|
|
(2.1)
|
|
(1.2)
|
Interest on short-term debt and other interest charges
|
|
1.8
|
|
1.9
|
Interest expense
|
|
47.8
|
|
40.1
|
INCOME
BEFORE TAXES
|
|
45.1
|
|
334.6
|
INCOME TAX
EXPENSE
|
|
6.8
|
|
55.1
|
NET INCOME
|
|
$
38.3
|
|
$
279.5
|
BASIC AVERAGE COMMON SHARES
OUTSTANDING
|
|
200.2
|
|
200.2
|
DILUTED AVERAGE COMMON SHARES
OUTSTANDING
|
|
200.8
|
|
200.6
|
BASIC EARNINGS PER AVERAGE COMMON SHARE
|
|
$
0.19
|
|
$
1.40
|
DILUTED EARNINGS PER
AVERAGE COMMON SHARE
|
|
$
0.19
|
|
$
1.39
|
OKLAHOMA GAS AND
ELECTRIC COMPANY
|
CONDENSED STATEMENTS
OF INCOME AND COMPREHENSIVE INCOME
|
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
(In
millions)
|
|
2023
|
|
2022
|
OPERATING
REVENUES
|
|
|
|
|
Revenues from contracts
with customers
|
|
$
544.6
|
|
$
578.1
|
Other
revenues
|
|
12.6
|
|
11.2
|
Operating
revenues
|
|
557.2
|
|
589.3
|
FUEL, PURCHASED POWER
AND DIRECT TRANSMISSION EXPENSE
|
|
200.6
|
|
255.7
|
OPERATING
EXPENSES
|
|
|
|
|
Other operation and maintenance
|
|
131.5
|
|
115.5
|
Depreciation and amortization
|
|
121.2
|
|
107.4
|
Taxes other than income
|
|
27.1
|
|
26.8
|
Operating
expenses
|
|
279.8
|
|
249.7
|
OPERATING INCOME
|
|
76.8
|
|
83.9
|
OTHER INCOME (EXPENSE)
|
|
|
|
|
Allowance for equity funds used during
construction
|
|
4.5
|
|
1.3
|
Other net periodic
benefit income (expense)
|
|
1.6
|
|
(1.4)
|
Other income
|
|
10.1
|
|
1.2
|
Other expense
|
|
(0.9)
|
|
(0.4)
|
Net other
income
|
|
15.3
|
|
0.7
|
INTEREST EXPENSE
|
|
|
|
|
Interest on long-term debt
|
|
46.5
|
|
38.5
|
Allowance for borrowed funds used during
construction
|
|
(2.1)
|
|
(1.2)
|
Interest on short-term debt and other interest charges
|
|
1.3
|
|
0.9
|
Interest expense
|
|
45.7
|
|
38.2
|
INCOME BEFORE TAXES
|
|
46.4
|
|
46.4
|
INCOME TAX EXPENSE
|
|
6.6
|
|
7.4
|
NET INCOME
|
|
$
39.8
|
|
$
39.0
|
Other comprehensive
income, net of tax
|
|
—
|
|
—
|
COMPREHENSIVE
INCOME
|
|
$
39.8
|
|
$
39.0
|
OKLAHOMA GAS AND
ELECTRIC COMPANY
|
FINANCIAL AND
STATISTICAL DATA
|
|
|
Three Months
Ended
|
|
|
March 31,
|
(Dollars in
millions)
|
|
2023
|
|
2022
|
Operating revenues by
classification:
|
|
|
|
|
Residential
|
|
$
211.7
|
|
$
231.7
|
Commercial
|
|
138.4
|
|
131.5
|
Industrial
|
|
52.9
|
|
58.7
|
Oilfield
|
|
47.7
|
|
53.4
|
Public authorities and
street light
|
|
46.2
|
|
49.4
|
System sales
revenues
|
|
496.9
|
|
524.7
|
Provision for tax
refund
|
|
1.4
|
|
(0.6)
|
Integrated
market
|
|
12.7
|
|
22.8
|
Transmission
|
|
35.2
|
|
35.8
|
Other
|
|
11.0
|
|
6.6
|
Total operating
revenues
|
|
$
557.2
|
|
$
589.3
|
MWh sales by
classification (In millions)
|
|
|
|
|
Residential
|
|
2.2
|
|
2.5
|
Commercial
|
|
1.9
|
|
1.6
|
Industrial
|
|
1.0
|
|
1.0
|
Oilfield
|
|
1.1
|
|
1.0
|
Public authorities and
street light
|
|
0.7
|
|
0.7
|
System
sales
|
|
6.9
|
|
6.8
|
Integrated
market
|
|
0.1
|
|
0.3
|
Total
sales
|
|
7.0
|
|
7.1
|
Number of
customers
|
|
890,413
|
|
882,499
|
Weighted-average cost
of energy per kilowatt-hour (In cents)
|
|
|
|
|
Natural gas
|
|
4.234
|
|
6.064
|
Coal
|
|
3.380
|
|
2.752
|
Total fuel
|
|
3.789
|
|
4.220
|
Total fuel and
purchased power
|
|
2.721
|
|
3.436
|
Degree days
(A)
|
|
|
|
|
Heating -
Actual
|
|
1,692
|
|
2,010
|
Heating -
Normal
|
|
1,887
|
|
1,887
|
Cooling -
Actual
|
|
6
|
|
3
|
Cooling -
Normal
|
|
10
|
|
10
|
|
(A) Degree days are
calculated as follows: The high and low degrees of a particular day
are added together and then averaged. If the calculated average is
above 65 degrees, then the difference between the calculated
average and 65 is expressed as cooling degree days, with each
degree of difference equaling one cooling degree day. If the
calculated average is below 65 degrees, then the difference between
the calculated average and 65 is expressed as heating degree days,
with each degree of difference equaling one heating degree day. The
daily calculations are then totaled for the particular reporting
period.
|
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SOURCE OGE Energy Corp.