Welcome!

News Feed Item

OGE Energy Corp. reports higher earnings for 2013

Formation of Enable Midstream Partners drives increase

OKLAHOMA CITY, Feb. 25, 2014 /PRNewswire/ -- OGE Energy Corp. (NYSE: OGE), the parent company of Oklahoma Gas and Electric Company ("OG&E"), and holder of 28.5 percent limited partner interest and 50 percent general partner interest in Enable Midstream Partners LP, today reported earnings of $1.94 per average diluted share in 2013, compared with earnings of $1.79 per average diluted share in 2012.  The presentation of the results reflects the 2 for 1 stock split which became effective July 1, 2013.

In 2013, OG&E, a regulated electric utility, reported net income of $293 million and contributed $1.47 per diluted share, compared with $280 million, or $1.41 per diluted share in 2012.  OGE Energy's interest in the natural gas midstream operations reported equity income of $100 million, or $0.50 per diluted share in 2013, compared to equity income of $74 million, or $0.38 per diluted share in 2012. The holding company posted a loss of $0.03 per diluted share in 2013 primarily due to the costs associated with the formation of the Enable Midstream partnership. The holding company did not report a loss in 2012.

"We're pleased to report another year of solid performance and increased earnings driven largely by the accretive impact of the Enable Midstream transaction," said OGE Energy Corp. Chairman, President and CEO Pete Delaney. "The utility continues to be on plan, nearing completion of the transmission build-out, managing costs, improving safety performance and driving customer engagement. Enable Midstream, under the leadership of Lynn Bourdon, continues to move forward with an IPO anticipated at the end of the first quarter in 2014."

Fourth Quarter results
For the three months ended Dec. 31, 2013, OGE Energy reported earnings of $0.29 per diluted share, compared with $0.19 per diluted share in the fourth quarter of 2012. The increase was primarily due to the accretion resulting from the formation of the Enable Midstream partnership.

Discussion of 2013 results

OGE Energy reported consolidated gross margin of $1.4 billion in 2013, compared with $1.8 billion in 2012. Operating income was $554 million in 2013, compared with $677 million in 2012. Net income was $388 million in 2013, compared with $355 million in 2012.

OG&E reported gross margin of $1.3 billion in 2013, which was approximately $30 million higher than 2012. OG&E's higher net income, $293 million in 2013 compared with $280 million in 2012, was primarily attributed to transmission revenues associated with new projects and new customer growth partially offset by milder weather compared to 2012.

Natural Gas Midstream Operations reported equity income to OGE Energy of $100 million for 2013 compared to $74 million in 2012.  The increase was primarily due to accretion and positive accounting adjustments resulting from the formation of the Enable Midstream partnership.

2014 Outlook
OGE Energy consolidated earnings guidance for 2014 is $1.94 to $2.06 per averaged diluted share. The guidance assumes approximately 200 million average diluted shares outstanding and normal weather for the year.  More information regarding the Company's 2014 earnings guidance and the Company's 2013 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 2013 and the 2014 outlook on Tuesday, February 25, 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 807,000 customers in Oklahoma and western Arkansas.  In addition, OGE holds a 28.5 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; 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; the risk that Enable Midstream Partners may not be able to successfully integrate the operations of Enogex LLC and the businesses contributed by a wholly-owned subsidiary of CenterPoint Energy, Inc.; 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, 2013.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities described herein, nor shall there be any sale of such securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any such offering may be made only by means of a prospectus.

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)


2013



2012


2013



2012


Operating revenues

$

2,867.7


$

3,671.2

$

2,262.2


$

2,141.2


Cost of sales


1,428.9



1,918.7


965.9



879.1


Gross Margin

$

1,438.8


$

1,752.5

$

1,296.3


$

1,262.1


















Note: Consolidated Statements of Income, Financial and Statistical Data attached.

OGE Energy Corp.









consolidated statements of income









(unaudited)

Three Months Ended


Twelve Months Ended



December 31


December 31



2013


2012


2013


2012



(In millions, except per share data)










OPERATING REVENUES









Electric Utility operating revenues

$    508.9


$    453.0


$ 2,259.7


$ 2,128.7


Natural Gas Midstream Operations operating revenues

-


409.1


608.0


1,542.5


Total operating revenues

508.9


862.1


2,867.7


3,671.2











COST OF SALES









Electric Utility 

232.3


195.3


950.0


831.4


Natural Gas Midstream Operations 

-


289.2


478.9


1,087.3


Total cost of sales

232.3


484.5


1,428.9


1,918.7











OPERATING EXPENSES









Other operation and maintenance

117.0


153.8


489.2


601.5


Depreciation and amortization

65.6


100.9


297.3


371.0


Impairment of assets

-


0.1


-


0.4


Gain on insurance proceeds

-


-


-


(7.5)


Taxes other than income

20.7


25.5


98.8


110.2


   Total operating expenses

203.3


280.3


885.3


1,075.6











OPERATING INCOME

73.3


97.3


553.5


676.9











OTHER INCOME (EXPENSE)









Equity in earnings of unconsolidated affiliate

37.4


-


101.9


-


Allowance for equity funds used during construction

2.2


1.3


6.6


6.2


Other income

6.4


4.8


31.8


17.6


Other expense

(6.3)


(5.4)


(22.2)


(16.5)


Net other income (expense)

39.7


0.7


118.1


7.3











INTEREST EXPENSE









Interest on long-term debt

34.9


40.6


145.6


158.9


Allowance for borrowed funds used during construction

(1.1)


(0.7)


(3.4)


(3.5)


Interest on short-term debt and other interest charges

1.5


2.1


5.3


8.7


Interest expense

35.3


42.0


147.5


164.1











INCOME BEFORE TAXES

77.7


56.0


524.1


520.1











INCOME TAX EXPENSE 

20.1


12.5


130.3


135.1











NET INCOME 

57.6


43.5


393.8


385.0














-






Less: Net income attributable to noncontrolling interests

-


5.0


6.2


30.0











NET INCOME ATTRIBUTABLE TO OGE ENERGY

$     57.6


$     38.5


$    387.6


$    355.0




















BASIC AVERAGE COMMON SHARES OUTSTANDING

198.5


197.5


198.2


197.1


DILUTED AVERAGE COMMON SHARES OUTSTANDING

199.6


198.7


199.4


198.1











BASIC EARNINGS PER AVERAGE COMMON SHARE









ATTRIBUTABLE TO OGE ENERGY COMMON SHAREHOLDERS

$     0.29


$     0.19


$     1.96


$     1.80











DILUTED EARNINGS PER AVERAGE COMMON SHARE









ATTRIBUTABLE TO OGE ENERGY COMMON SHAREHOLDERS

$     0.29


$     0.19


$     1.94


$     1.79


DIVIDENDS DECLARED PER COMMON SHARE

$0.22500


$0.20875


$0.85125


$0.79750


 

Oklahoma Gas and Electric Company





financial and statistical data








(unaudited)

Three Months Ended


Twelve Months Ended



December 31


December 31



2013


2012


2013


2012



(In millions)


Operating revenues by classification









     Residential

$ 191.5


$ 170.9


$   901.4


$   878.0


     Commercial

126.0


119.4


554.2


523.5


     Industrial

49.6


48.3


220.6


206.8


     Oilfield

40.5


37.6


176.4


163.4


     Public authorities and street light

49.0


47.4


214.3


202.4


     Sales for resale

13.7


13.0


59.4


54.9


          System sales revenues

470.3


436.6


2,126.3


2,029.0


     Off-system sales revenues

3.5


7.0


14.7


36.5


     Other

35.1


21.9


121.2


75.7


          Total operating revenues

$ 508.9


$ 465.5


$2,262.2


$2,141.2











Megawatt-hour sales by classification 









     Residential

2.2


1.8


9.4


9.1


     Commercial

1.8


1.6


7.1


7.0


     Industrial

0.9


1.0


3.9


4.0


     Oilfield

0.9


0.8


3.4


3.3


     Public authorities and street light

0.8


0.8


3.2


3.3


     Sales for resale

0.2


0.3


1.2


1.3


          System sales

6.8


6.3


28.2


28.0


     Off-system sales

0.1


0.3


0.4


1.4


          Total sales

6.9


6.6


28.6


29.4











Number of customers

806,940


798,110


806,940


798,110











Average cost of energy per kilowatt-hour - cents









     Natural gas

4.159


3.400


3.905


2.930


     Coal

2.213


2.367


2.273


2.310


     Total fuel

2.757


2.565


2.784


2.437


     Total fuel and purchased power

3.224


2.984


3.178


2.806











Degree days









     Heating - Actual

1,505


1,203


3,673


2,667


     Heating - Normal

1,329


1,329


3,349


3,349











     Cooling - Actual

88


77


2,106


2,561


     Cooling - Normal

74


74


2,092


2,092

 

SOURCE OGE Energy Corp.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
CIOs and those charged with running IT Operations are challenged to deliver secure, audited, and reliable compute environments for the applications and data for the business. Behind the scenes these tasks are often accomplished by following onerous time-consuming processes and often the management of these environments and processes will be outsourced to multiple IT service providers. In addition, the division of work is often siloed into traditional "towers" that are not well integrated for cro...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...