OGE Energy Corp reports $492 million 1Q loss

OGE Energy Corp on Thursday reported a net loss of $492 million or $2.46 a diluted share and cited an impairment of $780 million largely due to losses related to its interest in Enable Midstream Partners LP.

OGE Energy, parent company of OGE is a 50% general partner in Enable and said its $2.46 a share loss in the quarter ending March 31 compared to a 24 cents a share earnings reported a year ago.

OGE contributed earnings of a dime a share in the first quarter, same amount as a year earlier. But OGE Energy’s Natural Gas Midstream Operations suffered a loss of $2.84 a share compared to earnings of 11 cents a share in the first quarter of 2019.

OGE Energy Corp. Chairman, President and CEO Sean Trauschke stated, “We continue to execute on our utility plans to deliver safe, reliable and low-cost energy to our customers.  While the Enable write-down was impactful to earnings this quarter, it was not a reflection of the cash flows generated by these assets.  This was driven by the difference between market price and the price per unit we have on our books.”

OGE Energy posted a loss of $492 million or $2.46 per share in the first quarter, compared to earnings of approximately $47 million or $0.24 in the year-ago quarter.  OGE Energy’s ongoing earnings were $45 million or $0.23 per share in the first quarter of 2020.

OG&E’s net income was approximately $20 million or $0.10 per share in the first quarter, the same as last year. Earnings were unchanged quarter over quarter as the recovery of additional assets placed into service was partially offset by unfavorable weather.

Natural Gas Midstream Operations posted a loss of $568 million or $2.84 per share in the first quarter, compared to earnings of $22 million or $0.11 per share in in 2019.  The loss was due to a $780 million impairment charge driven by a significant drop in Enable’s unit market price.  Natural Gas Midstream Operations contributed ongoing net income to OGE Energy Corp. of $22 million for the first quarter of 2020. In addition, Enable Midstream issued cash distributions to OGE of approximately $37 million in the first quarter of 2020 compared to $35 million in 2019.

The guidance at OGE is unchanged between $1.72 and $1.78 per diluted share. Holding Company guidance is also unchanged and projected to post breakeven results in 2020.  As a result of the revised guidance by Enable and the equity method investment impairment recorded by the Company, OGE Holdings projects earnings contributions to be between ($2.59) to ($2.55) per average diluted share.

Click here to view SEC filing.

Source: OGE