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; firstname.lastname@example.org