DOW JONES NEWSWIRES
OGE Energy Corp.'s (OGE) second-quarter earnings rose 33% on
better performance in its pipeline business as a sweltering start
to the summer drove higher revenue at its electric utility.
The parent company of Oklahoma Gas and Electric Co. also said it
expected full-year earnings will top its February forecast of $3 to
$3.20 a share.
OGE has posted growing revenue last year as its Enogex pipeline
business outpaced sluggish residential demand over the past few
quarters. The pipeline unit again posted higher earnings in the
latest quarter on rising demand, rebounding from a weak
first-quarter performance.
"In our midstream business, we're pleased to report margins are
up in all areas as we continue to see growth in the natural gas
liquids-rich basins of the midcontinent," Chairman and Chief
Executive Pete Delaney said.
OGE posted a profit of $103 million, or $1.04 a share, up from
$77.3 million, or 78 cents a share, a year earlier. Analysts
surveyed by Thomson Reuters predicted earnings of 88 cents a
share.
Revenue increased 10% to $978.1 million.
Gross margin edged up to 43.8% from 42.9%.
Oklahoma Gas and Electric reported 11% higher revenue on
weather-related demand, while the midstream business saw revenue
climb 9.4% as margins expanded.
Shares closed Wednesday at $49.42 and weren't active premarket.
In April, the stock hit its highest level since going public in
2004 and has since fallen 7.6%.
-By Joan E. Solsman and Drew FitzGerald, Dow Jones Newswires;
212-416-2291; joan.solsman@dowjones.com