OKLAHOMA CITY, May 6, 2021 /PRNewswire/ -- OGE Energy Corp.
(NYSE: OGE), the parent company of Oklahoma Gas and Electric
Company ("OG&E"), and holder of 25.5 percent limited partner
interest and 50 percent general partner interest in Enable
Midstream Partners LP ("Enable"), today reported earnings of
$0.26 per diluted share for the three
months ended March 31, 2021 compared
to a loss of $2.46 per diluted share
for the first quarter of 2020. The loss in 2020 was primarily
due to a $590 million impairment
charge, net of tax, related to Enable.
- OG&E contributed earnings of $0.06 per share in the first quarter, compared
with earnings of $0.10 per share in
the first quarter last year
- Natural Gas Midstream Operations contributed earnings of
$0.19 per share, compared to a loss
of $2.84 per share in the first
quarter last year
- The holding company reported earnings of $0.01 per share compared to $0.28 per share in the first quarter of
2020. As a result of the impairment related to Enable, the
holding company's 2020 results were impacted by a consolidating tax
adjustment that eliminated over the course of the year.
"We have made strong progress this quarter towards mitigating
the impact of the February weather event. Our track record of
operational excellence provides us great confidence that we will
deliver within our guidance range of $1.76 to $1.86 per
share at the utility." said OGE Energy Corp. Chairman, President
and CEO Sean Trauschke.
Innovative Projects Announced in 2021
In April,
OG&E announced an agreement with Dobson Fiber to build
approximately 350 miles of fiber to upgrade the resiliency and
capacity of the utility communications network. The project
will save customers more than 60% over standard deployment
costs. OG&E also announced an expansion of the Choctaw
Nation/OG&E solar energy center, expanding its commitment to
renewable energy driven by customer demand for its popular
renewable energy offerings.
First Quarter 2021
OGE
Energy's net income was $53
million or $0.26 per share in
the first quarter, compared to a loss of $492 million or $2.46 per share in the year-ago
quarter.
OG&E's net income was approximately
$11 million or $0.06 per share in the first quarter, compared to
$20 million or $0.10 per share in the comparable quarter last
year. The primary driver for the decrease in net income was a loss
from the guaranteed flat bill program during the February 2021 extreme cold weather event.
Other operating results were favorable during the quarter,
including outstanding cost management efforts.
Natural Gas Midstream Operations contributed
net income to OGE Energy Corp. of $38
million or $0.19 per share in
the first quarter, compared to a loss of $568 million or $2.84 per share in the same period in 2020.
The increase in net income was primarily due to the 2020 impact of
the impairment of OGE Energy's investment in Enable, partially
offset by a decrease in income tax benefit related to this
impairment charge. The increase in earnings was also
impacted by higher net income from Enable's transportation and
storage business resulting from higher natural gas sales prices.
In addition, Enable Midstream issued cash distributions
to OGE of approximately $18 million
in the first quarter of 2021 compared to $37
million in 2020.
2021 Outlook
OG&E's earnings guidance remains
unchanged and is between $352 million
to $373 million, or $1.76 to $1.86 per
average diluted share. Based on first quarter 2021 results,
including the impacts of the 2021 February extreme cold weather
event and strong mitigation efforts, OG&E currently projects
full year results in the lower half of the range. The
guidance assumes, among other things, approximately 200 million
average diluted shares outstanding and normal weather for the year.
As indicated in its 2020 Form 10-K, OGE Energy is not issuing 2021
consolidated earnings guidance due to Enable not issuing an
earnings outlook due to the announced merger between Enable and
Energy Transfer. See OGE Energy's 2020 Form 10-K for other key
factors and assumptions underlying its 2021 guidance.
Conference Call Webcast
OGE Energy will host a
conference call for discussion of the results on Thursday, May 6, at 8 a.m.
CST. The conference will be available through
www.ogeenergy.com. OGE Energy Corp. is the parent company of
OG&E, a regulated electric utility with approximately 871,000
customers in Oklahoma and western
Arkansas. In addition, OGE holds a 25.5 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.
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", "target"
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; the ability to obtain timely and sufficient
rate relief to allow for recovery of items such as capital
expenditures, fuel costs, operating costs, transmission costs and
deferred expenditures; prices and availability of electricity,
coal, natural gas and natural gas liquids ("NGLs"); the timing and
extent of changes in commodity prices, particularly natural gas and
NGLs, the competitive effects of the available pipeline capacity in
the regions Enable serves, and the effects of geographic and
seasonal commodity price differentials, including the effects of
these circumstances on re-contracting available capacity on
Enable's interstate pipelines; the timing and extent of changes in
the supply of natural gas, particularly supplies available for
gathering by Enable's gathering and processing business and
transporting by Enable's interstate and intrastate pipelines,
including the impact of natural gas and NGLs prices on the level of
drilling and production activities in the regions Enable serves;
business conditions in the energy and natural gas midstream
industries, including the demand for natural gas, NGLs, 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; the impact on demand for our 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 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 or restrict or change the way the
Company's facilities are operated; 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 and other catastrophic events; creditworthiness of
suppliers, customers and other contractual parties; social
attitudes regarding the utility, natural gas 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; the impact of extraordinary external events,
such as the current pandemic health event resulting from COVID-19,
and their collateral consequences, including extended disruption of
economic activity in the Company's markets; costs and other effects
of legal and administrative proceedings, settlements,
investigations, claims and matters; difficulty in making accurate
assumptions and projections regarding future revenues and costs
associated with the Company's equity investment in Enable that the
Company does not control; Enable's pending merger with Energy
Transfer and the expected timing of the consummation of the merger;
and other risk factors listed in the reports filed by the Company
with the Securities and Exchange Commission including those listed
in Risk Factors in the Company's Form 10-K for the year ended
December 31, 2020.
Note: Consolidated Statements of Income, Financial and
Statistical Data attached.
OGE Energy
Corp
|
Consolidated
Statements of Income
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
(In millions, except per share data)
|
2021
|
2020
|
OPERATING
REVENUES
|
|
|
Revenues from
contracts with customers
|
$
1,621.0
|
$
420.4
|
Other
revenues
|
9.6
|
10.9
|
Operating
revenues
|
1,630.6
|
431.3
|
COST OF
SALES
|
1,346.8
|
135.0
|
OPERATING
EXPENSES
|
|
|
Other operation and maintenance
|
109.3
|
120.0
|
Depreciation and amortization
|
98.7
|
94.4
|
Taxes other than income
|
27.2
|
25.6
|
Operating
expenses
|
235.2
|
240.0
|
OPERATING INCOME
|
48.6
|
56.3
|
OTHER INCOME (EXPENSE)
|
|
|
Equity in earnings
(losses) of unconsolidated affiliates
|
53.2
|
(746.5)
|
Allowance for equity funds used during
construction
|
1.3
|
1.3
|
Other net periodic
benefit expense
|
(1.4)
|
(0.5)
|
Other income
|
3.0
|
7.4
|
Other expense
|
(2.0)
|
(6.1)
|
Net other income (expense)
|
54.1
|
(744.4)
|
INTEREST EXPENSE
|
|
|
Interest on long-term debt
|
38.4
|
36.6
|
Allowance for borrowed funds used during
construction
|
(0.8)
|
(0.5)
|
Interest on short-term debt and other interest charges
|
1.8
|
2.2
|
Interest expense
|
39.4
|
38.3
|
INCOME
(LOSS) BEFORE TAXES
|
63.3
|
(726.4)
|
INCOME TAX
EXPENSE (BENEFIT)
|
10.6
|
(234.6)
|
NET INCOME
(LOSS)
|
$
52.7
|
$
(491.8)
|
BASIC AVERAGE COMMON SHARES
OUTSTANDING
|
200.1
|
200.2
|
DILUTED AVERAGE COMMON SHARES
OUTSTANDING
|
200.1
|
200.2
|
BASIC EARNINGS
(LOSS) PER AVERAGE COMMON SHARE
|
$
0.26
|
$
(2.46)
|
DILUTED EARNINGS
(LOSS) PER AVERAGE COMMON SHARE
|
$
0.26
|
$
(2.46)
|
Oklahoma Gas
and Electric Company
|
|
|
Financial and
Statistical Data
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
(Dollars in
millions)
|
2021
|
2020
|
Operating revenues by
classification:
|
|
|
Residential
|
$
573.3
|
$
172.3
|
Commercial
|
309.7
|
94.1
|
Industrial
|
147.7
|
42.6
|
Oilfield
|
161.3
|
39.0
|
Public authorities
and street light
|
123.9
|
35.6
|
Sales for
resale
|
-
|
(0.1)
|
System sales
revenues
|
1,315.9
|
383.5
|
Provision for rate
refund
|
-
|
(0.6)
|
Integrated
market
|
302.1
|
7.2
|
Transmission
|
36.3
|
34.2
|
Other
|
(23.7)
|
7.0
|
Total operating
revenues
|
$
1,630.6
|
$
431.3
|
MWh sales by
classification(In millions)
|
|
|
Residential
|
2.5
|
2.2
|
Commercial
|
1.5
|
1.5
|
Industrial
|
1.0
|
1.1
|
Oilfield
|
1.0
|
1.1
|
Public authorities
and street light
|
0.6
|
0.6
|
System
sales
|
6.6
|
6.5
|
Integrated
market
|
0.3
|
0.3
|
Total
sales
|
6.9
|
6.8
|
Number of
customers
|
871,494
|
859,628
|
Weighted-average
cost of energy per kilowatt-hour(In cents)
|
|
|
Natural
gas
|
43.843
|
1.663
|
Coal
|
1.786
|
1.905
|
Total fuel
|
21.168
|
1.529
|
Total fuel and
purchased power
|
18.401
|
1.886
|
Degree
days
|
|
|
Heating -
Actual
|
2,066
|
1,649
|
Heating -
Normal
|
1,800
|
1,800
|
Cooling -
Actual
|
6
|
23
|
Cooling -
Normal
|
13
|
13
|
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SOURCE OGE Energy Corp.