OGE Energy Corp reports drop in earnings and income

Earnings and income were down in the second quarter 2019 for OGE Energy Corp., the parent company of Oklahoma Gas and Electric Company.

The company reported earnings of 50 cents per diluted share for the three months that ended June 30,2019 compared to 55 cents a share a year ago.

  • OG&E, a regulated electric utility, contributed earnings of $0.37 per share in the second quarter, compared with earnings of $0.46 per share in the second quarter last year.
  • Natural Gas Midstream Operations contributed earnings of $0.13 per share compared with earnings of $0.11 per share in the second quarter last year.
  • The holding company and other operations posted breakeven results in the second quarter, compared with a loss of $0.02 per share in the second quarter last year.

“Both of our businesses performed well in the second quarter and are on plan for the year,” said Sean Trauschke, OGE Energy Chairman, President and CEO. “We continue to focus on all aspects of our operations creating value for our customers, communities and shareholders.”

OGE Energy’snet income was approximately $100 million in the second quarter, compared to approximately $111 million in the year-ago quarter.

OG&E’s net income was approximately $75 million in the second quarter, compared to approximately $92 million in the comparable quarter last year. The primary driver for the decrease in net income was lower gross margin as a result of milder weather.

Natural Gas Midstream Operations contributed net income to OGE Energy Corp. of approximately $27 million for the second quarter of 2019 compared to net income of approximately $22 million for the same period in 2018.  The increase was in part due to higher volumes in the gathering and processing segments. Enable Midstream issued cash distributions to OGE of approximately $35 million in each of the second quarters of 2019 and 2018.  In addition, Enable announced an increase in the quarterly distribution rate from $0.3180 to $0.3305 per common unit payable August 27, 2019.

The Company reaffirmed its 2019 consolidated earnings guidance between approximately $412 million and $442 million of net income, or $2.05 to $2.20 per average diluted share.