OKLAHOMA CITY, Feb. 26, 2015 /PRNewswire/ -- OGE Energy
Corp. (NYSE: OGE), the parent company of Oklahoma Gas and Electric
Company ("OG&E"), and holder of 26.3 percent limited partner
interest and 50 percent general partner interest in Enable
Midstream Partners LP, today reported earnings of $1.98 per average diluted share in 2014, compared
with earnings of $1.94 per average
diluted share in 2013.
In 2014, OG&E, a regulated electric utility, reported net
income of $292 million and
contributed $1.46 per diluted share,
compared with $293 million, or
$1.47 per diluted share in 2013.
Enable Midstream issued cash distributions to OGE of
approximately $144 million and
contributed earnings of $102 million,
or $0.51 per diluted share in 2014,
compared to earnings of $100 million,
or $0.50 per diluted share in 2013.
The holding company posted earnings of $0.01 per diluted share in 2014, compared to a
loss of $.03 per share in 2013. The
loss at the holding company in 2013 was primarily associated with
the transaction costs associated with the formation of Enable
Midstream Partners.
"We're pleased to report another year of solid financial and
operating performance," said OGE Energy Corp. Chairman and CEO
Pete Delaney. "The utility ranks
very high in customer satisfaction surveys. We continue to control
our costs and invest to improve the quality of service to our
customers. Our cash distributions from Enable will continue to
support our 10% dividend growth rate, our environmental compliance
plan and other key programs."
Fourth Quarter results
For the three months ended Dec. 31,
2014, OGE Energy reported earnings of $0.29 per diluted share, compared with
$0.29 per diluted share in the fourth
quarter of 2013.
Discussion of 2014 results
OGE Energy reported consolidated gross margin of
$1.3 billion in 2014, compared with
$1.4 billion in 2013. Operating
income was $537 million in 2014,
compared with $554 million in 2013.
Net income was $396 million in 2014,
compared with $388 million in
2013.
OG&E reported gross margin of $1.3 billion in 2014, which was approximately
$50 million higher than 2013. Though
gross margin was higher year-over-year driven primarily by
transmission revenues and customer growth, it was negatively
impacted by mild summer weather. Offsetting the slight
increase in gross margin were higher depreciation expenses and
higher operating and interest expenses in 2014 as compared to 2013.
As a result, OG&E's net income decreased by $1 million from $293
million in 2013 to $292
million in 2014.
Natural Gas Midstream Operations earnings
contributed to OGE were $102 million
for 2014 compared to $100 million in
2013. Offsetting the higher, year over year margins was a
one-time benefit of approximately $25
million resulting from the formation of the Enable Midstream
partnership in 2013.
2015 Outlook
OG&E is projected to earn $1.41 to
$1.49 per average diluted share. Cash distributions
from Enable Midstream Partners are expected to be between
$139 million and $142 million.
Additionally, OGE Energy consolidated earnings guidance for 2015 is
$1.76 to $1.89 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 2015 earnings guidance and
the Company's 2014 financial results is contained in the Company's
Form 10-K filed with the Securities and Exchange Commission.
Live Webcast
OGE Energy will host a live webcast for discussion of the
results of 2014 and the 2015 outlook on Thursday, February 26, at 8 a.m. CST. The conference will be available
through www.oge.com. OGE Energy Corp. is the parent company
of OG&E, a regulated electric utility with approximately
815,000 customers in Oklahoma and
western Arkansas. In addition, OGE holds a 26.3 percent
limited partner interest and a 50 percent general partner interest
of Enable Midstream Partners LP, created by the merger of OGE's
Enogex LLC midstream subsidiary and the pipeline and field services
businesses of Houston-based
CenterPoint Energy.
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", "intend",
"objective", "plan", "possible", "potential", "project" and similar
expressions. Actual results may vary materially. Factors
that could cause actual results to differ materially 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
their impact on capital expenditures; the ability of the Company
and its subsidiaries to access the capital markets and obtain
financing on favorable terms as well as inflation rates and
monetary fluctuations; prices and availability of electricity,
coal, natural gas and natural gas liquids; the timing and extent of
changes in commodity prices, particularly natural gas and natural
gas liquids, the competitive effects of the available pipeline
capacity in the regions Enable Midstream Partners serves, and the
effects of geographic and seasonal commodity price differentials,
including the effects of these circumstances on re-contracting
available capacity on Enable Midstream Partners' interstate
pipelines; the timing and extent of changes in the supply of
natural gas, particularly supplies available for gathering by
Enable Midstream Partners' gathering and processing business and
transporting by Enable Midstream Partners' interstate pipelines,
including the impact of natural gas and natural gas liquids prices
on the level of drilling and production activities in the regions
Enable Midstream Partners serves; business conditions in the energy
and natural gas midstream industries including the demand for
natural gas, natural gas liquids, crude oil and midstream services;
competitive factors including the extent and timing of the entry of
additional competition in the markets served by the Company;
unusual weather; availability and prices of raw materials for
current and future construction projects; 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 and regulations that may
impact the Company's operations; 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
cyber-attacks and other catastrophic events; advances in
technology; creditworthiness of suppliers, customers and other
contractual parties; difficulty in making accurate assumptions and
projections regarding future revenues and costs associated with the
Company's equity investment in Enable Midstream Partners that the
Company does not control; and other risk factors listed in the
reports filed by the Company with the Securities and Exchange
Commission including those listed in Risk Factors and Exhibit 99.01
to the Company's Form 10-K for the year ended December 31,
2014.
Non-GAAP Financial Measures
Gross Margin is defined by OG&E as operating revenues less
fuel, purchased power and transmission expenses. Gross margin
is a non-GAAP financial measure because it excludes depreciation
and amortization, and other operation and maintenance expenses.
Expenses for fuel, purchased power and transmission expenses are
recovered through fuel adjustment clauses and as a result changes
in these expenses are offset in operating revenues with no impact
on net income. OG&E believes gross margin provides a more
meaningful basis for evaluating its operations across periods than
operating revenues because gross margin excludes the revenue effect
of fluctuations in these expenses. Gross margin is used
internally to measure performance against budget and in reports for
management and the Board of Directors. OG&E's definition of
gross margin may be different from similar terms used by other
companies.
Reconciliation of gross margin to revenue:
|
|
|
|
|
|
|
|
OGE Energy
Year Ended December 31,
|
|
|
OG&E Year
Ended
December 31,
|
|
(Dollars in
Millions)
|
|
2014
|
|
|
2013
|
|
2014
|
|
|
2013
|
|
Operating
revenues
|
$
|
2,453.1
|
|
$
|
2,867.7
|
$
|
2,453.1
|
|
$
|
2,262.2
|
|
Cost of
sales
|
|
1,106.6
|
|
|
1,428.9
|
|
1,106.6
|
|
|
965.9
|
|
Gross
Margin
|
$
|
1,346.5
|
|
$
|
1,438.8
|
$
|
1,346.5
|
|
$
|
1,296.3
|
|
Note: Consolidated Statements of Income, Financial and
Statistical Data attached.
OGE Energy
Corp.
|
|
|
|
|
|
Consolidated
Statements of Income
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
(In millions, except per share data)
|
2014
|
2013
|
|
2014
|
2013
|
OPERATING REVENUES
|
|
|
|
|
|
Electric Utility
|
$ 526.2
|
$ 508.9
|
|
$ 2,453.1
|
$ 2,259.7
|
Natural Gas Midstream Operations
|
—
|
—
|
|
—
|
608.0
|
Total operating revenues
|
526.2
|
508.9
|
|
2,453.1
|
2,867.7
|
COST OF
SALES
|
|
|
|
|
|
Electric
Utility
|
237.0
|
232.3
|
|
1,106.6
|
950.0
|
Natural Gas Midstream
Operations
|
—
|
—
|
|
—
|
478.9
|
Total cost of
sales
|
237.0
|
232.3
|
|
1,106.6
|
1,428.9
|
OPERATING
EXPENSES
|
|
|
|
|
|
Other operation and maintenance
|
107.7
|
117.0
|
|
439.6
|
489.2
|
Depreciation and amortization
|
74.2
|
65.6
|
|
281.4
|
297.3
|
Taxes other than income
|
22.2
|
20.7
|
|
88.7
|
98.8
|
Total operating
expenses
|
204.1
|
203.3
|
|
809.7
|
885.3
|
OPERATING INCOME
|
85.1
|
73.3
|
|
536.8
|
553.5
|
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
Equity in earnings of
unconsolidated affiliates
|
40.7
|
37.4
|
|
172.6
|
101.9
|
Allowance for equity funds used during
construction
|
1.2
|
2.2
|
|
4.2
|
6.6
|
Other income
|
6.1
|
6.4
|
|
17.8
|
31.8
|
Other expense
|
(3.2)
|
(6.3)
|
|
(14.4)
|
(22.2)
|
Net other income
|
44.8
|
39.7
|
|
180.2
|
118.1
|
INTEREST EXPENSE
|
|
|
|
|
|
Interest on long-term debt
|
35.4
|
34.9
|
|
144.6
|
145.6
|
Allowance for borrowed funds used during
construction
|
(0.7)
|
(1.1)
|
|
(2.4)
|
(3.4)
|
Interest on short-term debt and other interest charges
|
1.2
|
1.5
|
|
6.2
|
5.3
|
Interest expense
|
35.9
|
35.3
|
|
148.4
|
147.5
|
INCOME BEFORE TAXES
|
94.0
|
77.7
|
|
568.6
|
524.1
|
INCOME TAX EXPENSE
|
35.6
|
20.1
|
|
172.8
|
130.3
|
NET INCOME
|
58.4
|
57.6
|
|
395.8
|
393.8
|
Less: Net income attributable to
noncontrolling interests
|
—
|
—
|
|
—
|
6.2
|
NET INCOME ATTRIBUTABLE TO OGE
ENERGY
|
$ 58.4
|
$ 57.6
|
|
$ 395.8
|
$ 387.6
|
BASIC AVERAGE COMMON SHARES
OUTSTANDING
|
199.4
|
198.5
|
|
199.2
|
198.2
|
DILUTED AVERAGE COMMON SHARES
OUTSTANDING
|
199.5
|
199.6
|
|
199.9
|
199.4
|
BASIC EARNINGS PER AVERAGE COMMON SHARE
ATTRIBUTABLE TO OGE ENERGY COMMON
SHAREHOLDERS
|
$ 0.29
|
$ 0.29
|
|
$ 1.99
|
$ 1.96
|
DILUTED EARNINGS PER
AVERAGE COMMON SHARES ATTRIBUTABLE TO OGE ENERGY COMMON
SHAREHOLDERS
|
$ 0.29
|
$ 0.29
|
|
$ 1.98
|
$ 1.94
|
DIVIDENDS DECLARED PER COMMON
SHARE
|
$ 0.25000
|
$ 0.22500
|
|
$ 0.95000
|
$ 0.85125
|
Oklahoma Gas
and Electric Company
|
|
|
|
|
|
Financial and
Statistical Data
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
(Dollars in
millions)
|
2014
|
2013
|
|
2014
|
2013
|
Operating revenues by
classification
|
|
|
|
|
|
Residential
|
$ 186.9
|
$ 191.5
|
|
$ 925.5
|
$ 901.4
|
Commercial
|
129.1
|
126.0
|
|
583.3
|
554.2
|
Industrial
|
50.0
|
49.6
|
|
224.5
|
220.6
|
Oilfield
|
41.9
|
40.5
|
|
188.3
|
176.4
|
Public authorities
and street light
|
48.0
|
49.0
|
|
220.3
|
214.3
|
Sales for
resale
|
11.6
|
13.7
|
|
52.9
|
59.4
|
System sales
revenues
|
467.5
|
470.3
|
|
2,194.8
|
2,126.3
|
Off-system sales
revenues
|
16.1
|
3.5
|
|
94.1
|
14.7
|
Other
|
42.6
|
35.1
|
|
164.2
|
121.2
|
Total operating
revenues
|
$ 526.2
|
$ 508.9
|
|
$2,453.1
|
$2,262.2
|
MWH sales by
classification (In millions)
|
|
|
|
|
|
Residential
|
2.1
|
2.2
|
|
9.4
|
9.4
|
Commercial
|
1.7
|
1.8
|
|
7.2
|
7.1
|
Industrial
|
0.9
|
0.9
|
|
3.8
|
3.9
|
Oilfield
|
0.8
|
0.9
|
|
3.4
|
3.4
|
Public authorities
and street light
|
0.8
|
0.8
|
|
3.2
|
3.2
|
Sales for
resale
|
0.2
|
0.2
|
|
1.0
|
1.2
|
System
sales
|
6.5
|
6.8
|
|
28.0
|
28.2
|
Off-system
sales
|
0.3
|
0.1
|
|
2.2
|
0.4
|
Total
sales
|
6.8
|
6.9
|
|
30.2
|
28.6
|
Number of
customers
|
814,982
|
806,940
|
|
814,982
|
806,940
|
Weighted-average cost
of energy per kilowatt-hour - cents
|
|
|
|
|
|
Natural
gas
|
3.724
|
4.159
|
|
4.506
|
3.905
|
Coal
|
2.169
|
2.213
|
|
2.152
|
2.273
|
Total fuel
|
2.499
|
2.757
|
|
2.752
|
2.784
|
Total fuel and
purchased power
|
3.312
|
3.224
|
|
3.493
|
3.178
|
Degree days
(A)
|
|
|
|
|
|
Heating -
Actual
|
1,289
|
1,505
|
|
3,569
|
3,673
|
Heating -
Normal
|
1,329
|
1,329
|
|
3,349
|
3,349
|
Cooling -
Actual
|
129
|
88
|
|
2,114
|
2,106
|
Cooling -
Normal
|
74
|
74
|
|
2,092
|
2,092
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/oge-energy-corp-reports-earnings-for-2014-and-outlook-for-2015-300041733.html
SOURCE OGE Energy Corp.