OKLAHOMA CITY, May 7, 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 $0.22 per diluted share for the three months
ended March 31, 2015 compared to
$0.25 per diluted share for the first
quarter of 2014.
OG&E, a regulated electric utility, contributed earnings of
$0.09 per share in the first quarter,
compared with earnings of $0.10 per
share in the first quarter last year. OGE Energy's interest in
Enable contributed earnings of $0.11
per share compared with earnings of $0.15 per share last year. First quarter
distributions received from Enable Midstream were $34 million compared to $33 million in 2014. The holding company
posted earnings of $0.02 per share in
the first quarter, compared with breakeven results in the first
quarter of 2014.
"The utility operations and earnings are on track registering
solid results in the first quarter," said OGE Energy Corp. Chairman
and CEO Pete Delaney. "Quarterly
cash distributions from Enable were up more than 5 percent year
over year, supporting our ability to deliver the 10% dividend
growth in our 5 year financial plan."
Discussion of First Quarter 2015
OGE
Energy's net income was $43
million in the first quarter, compared to $49 million in the year-ago quarter.
OG&E's net income was $17 million in the first quarter, compared to
$21 million in the comparable quarter
last year. The decline was primarily due to mild winter
weather compared to the same period in 2014, higher depreciation
and interest expenses partially offset by growth from new
customers. Gross margin on revenues was $269 million in the first quarter, compared with
$267 million for the same period last
year.
Natural Gas Midstream Operations contributed net
income to OGE Energy Corp. of $23
million for the first quarter of 2015 compared to
$29 million for the same period in
2014. The decrease is primarily due to lower commodity prices.
2015 Outlook
The 2015 outlook is unchanged with
OG&E 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.
Finally, 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.
Conference Call Webcast
OGE Energy will host a
conference call for discussion of the results and the outlook for
the rest of 2015 on Thursday, May 7,
at 8 a.m. CDT. The conference will be
available through www.oge.com. OGE Energy Corp. is the parent
company of OG&E, a regulated electric utility approximately
818,000 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, created by the merger of OGE's Enogex LLC
midstream subsidiary and the pipeline and field services businesses
of Houston-based CenterPoint
Energy.
Non-GAAP Financial Measures
OG&E has
included in this release the non-GAAP financial measure Gross
Margin. Gross Margin is defined by OG&E as operating revenues
less fuel, purchased power and certain 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 and purchased power 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 attributable to OG&E
|
|
|
|
Three Months
Ended
March 31,
|
(In
millions)
|
|
2015
|
|
|
2014
|
Operating
revenues
|
$
|
480.1
|
|
$
|
560.4
|
Less:
|
|
|
|
|
|
Cost of
sales
|
|
211.6
|
|
|
293.4
|
Gross
Margin
|
$
|
268.5
|
|
$
|
267.0
|
|
|
|
|
|
|
|
|
|
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.
Note: Consolidated Statements of Income, Financial and
Statistical Data attached.
OGE Energy
Corp.
|
Consolidated
Statements of Income
|
(Unaudited)
|
|
|
|
|
Three Months Ended
March 31,
|
(In millions, except per share data)
|
2015
|
2014
|
OPERATING REVENUES
|
$ 480.1
|
$ 560.4
|
COST OF
SALES
|
211.6
|
293.4
|
OPERATING
EXPENSES
|
|
|
Other operation and maintenance
|
111.7
|
112.4
|
Depreciation and amortization
|
75.9
|
67.2
|
Taxes other than income
|
24.5
|
25.6
|
Total operating
expenses
|
212.1
|
205.2
|
OPERATING INCOME
|
56.4
|
61.8
|
OTHER INCOME (EXPENSE)
|
|
|
Equity in earnings of
unconsolidated affiliates
|
31.7
|
47.9
|
Allowance for equity funds used during
construction
|
1.5
|
1.1
|
Other income
|
4.9
|
1.4
|
Other expense
|
(1.0)
|
(3.3)
|
Net other income
|
37.1
|
47.1
|
INTEREST EXPENSE
|
|
|
Interest on long-term debt
|
36.9
|
35.1
|
Allowance for borrowed funds used during
construction
|
(0.8)
|
(0.6)
|
Interest on short-term debt and other interest charges
|
1.3
|
1.4
|
Interest expense
|
37.4
|
35.9
|
INCOME BEFORE TAXES
|
56.1
|
73.0
|
INCOME TAX EXPENSE
|
12.9
|
23.7
|
NET INCOME
|
$ 43.2
|
$ 49.3
|
BASIC AVERAGE COMMON
SHARES OUTSTANDING
|
199.5
|
198.8
|
DILUTED AVERAGE COMMON SHARES
OUTSTANDING
|
199.5
|
199.5
|
BASIC EARNINGS PER AVERAGE COMMON SHARE
|
$ 0.22
|
$ 0.25
|
DILUTED EARNINGS PER
AVERAGE COMMON SHARES
|
$ 0.22
|
$ 0.25
|
DIVIDENDS DECLARED PER COMMON
SHARE
|
$ 0.25000
|
$ 0.22500
|
Oklahoma Gas
and Electric Company
|
Financial and
Statistical Data
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
(Dollars in
millions)
|
2015
|
2014
|
Operating revenues by
classification
|
|
|
Residential
|
$ 194.6
|
$ 220.5
|
Commercial
|
105.9
|
123.7
|
Industrial
|
41.7
|
50.8
|
Oilfield
|
37.0
|
44.3
|
Public authorities
and street light
|
39.4
|
47.9
|
Sales for
resale
|
11.8
|
16.6
|
System sales
revenues
|
430.4
|
503.8
|
Off-system sales
revenues
|
10.3
|
19.0
|
Other
|
39.4
|
37.6
|
Total operating
revenues
|
$ 480.1
|
$ 560.4
|
MWH sales by
classification (In millions)
|
|
|
Residential
|
2.3
|
2.5
|
Commercial
|
1.6
|
1.6
|
Industrial
|
0.9
|
0.9
|
Oilfield
|
0.9
|
0.8
|
Public authorities
and street light
|
0.7
|
0.7
|
Sales for
resale
|
0.3
|
0.3
|
System
sales
|
6.7
|
6.8
|
Off-system
sales
|
0.2
|
0.4
|
Total
sales
|
6.9
|
7.2
|
Number of
customers
|
817,781
|
809,602
|
Weighted-average cost
of energy per kilowatt-hour - cents
|
|
|
Natural
gas
|
2.629
|
5.518
|
Coal
|
2.115
|
2.146
|
Total fuel
|
2.200
|
3.490
|
Total fuel and
purchased power
|
2.901
|
3.792
|
Degree days
(A)
|
|
|
Heating -
Actual
|
1,841
|
2,065
|
Heating -
Normal
|
1,798
|
1,798
|
Cooling -
Actual
|
11
|
9
|
Cooling -
Normal
|
13
|
13
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/oge-energy-corp-reports-first-quarter-results-300079161.html
SOURCE OGE Energy Corp.