Tulsa-based OGE Energy Corp. reported increased earnings in 2019 compared to 2018 but quarterly earnings were down.
The company stated its earnings were $2.16 per average diluted share in 2019 compared with $2.12 in 2018.
In 2019, OG&E, a regulated electric utility, reported net income of $350 million and contributed $1.74 per diluted share, compared with $328 million, or $1.64 per diluted share in 2018.
For the three months ended December 31, 2019, OGE Energy reported earnings of $0.18 per diluted share compared with $0.27 per diluted share in the fourth quarter of 2018. The decrease in earnings is primarily due to the asset impairment at Enable Midstream. The decrease is partially offset by higher earnings at the utility primarily due to the recovery of assets placed into service.
Natural Gas Midstream Operations received cash distributions from Enable Midstream of $144 million and contributed earnings of approximately $81 million, or $0.41 per diluted share in 2019 compared to cash distributions of approximately $141 million and contributed earnings of $109 million, or $0.54 per diluted share in 2018. The 2019 Natural Gas Midstream results include a non-cash asset impairment of $16 million or $0.08 per share. The holding company posted a gain of $2 million or $0.01 per diluted share in 2019, compared to a loss of $11 million or $0.06 per diluted share in 2018.
“Our company achieved another solid year in 2019,” said OGE Energy Chairman, President and CEO Sean Trauschke. We wrapped up our environmental compliance investments, opportunistically purchased two power plants under legacy purchase power agreements thereby saving customers millions of dollars. We continued to attract new businesses to our service territory and at the same time maintained the lowest rates in the nation. I could not be prouder of our members’ 2019 accomplishments.”
Discussion of 2019 results
OG&E reported net income of $350 million in 2019 compared to $328 million in 2018, an increase of 6.7 percent. Higher earnings in 2019 were primarily due to the recovery of assets placed into service, customer growth and more favorable weather.
Natural Gas Midstream Operations contributed earnings to OGE of approximately $81 million for 2019 compared to $109 million for 2018. Volumes were higher across all business segments and Enable increased the quarterly distribution rate to LP unit holders by 4%.
OG&E is projected to earn $1.72 to $1.78 per average diluted share. The Company projects the earnings contribution from its ownership interest in Enable Midstream to be at the lower end of approximately $0.47 to $0.53 per average diluted share and breakeven results at the holding company.
Additionally, OGE Energy consolidated earnings guidance for 2020 is $2.19 to $2.31 per average diluted share. The guidance assumes approximately 201 million average diluted shares outstanding and normal weather for the year. More information regarding the Company’s 2020 earnings guidance and the Company’s 2019 financial results is contained in the Company’s Form 10-K filed with the Securities and Exchange Commission.
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Source: OGE report