The same week the Oklahoma Supreme Court okayed nearly $1 billion in ratepayer-backed bonds to cover February 2021 storm costs for Oklahoma Gas and Electric Company, its parent company, OGE Energy Corp. reported significantly improved earnings in the first quarter of 2022.
The company cited net income of $280 million or $1.39 a diluted share compared to 26 cents a share in the same period in 2021.
“Solid execution and load growth in the first quarter have us on plan for the year” said Sean Trauschke, OGE Energy Corp. Chairman, President and CEO.
OG&E reported earnings of 19 cents a share in the first quarter, far stronger than the 6 cent a share in the first quarter of last year.
Its Natural gas Midstream Operations had earnings of $1.15 a share in the quarter over the 19 cents a share a year earlier. The holding company and other operations also reported earnings of 5 cents a share compared to one cent a share in the first quarter of 2021.
“We continue to grow our investments in technology and equipment that benefit customers through improved reliability, resiliency, communication and security to energize their homes, businesses and lives,” added Trauschke.
OG&E’s reported net income was $39 million or 19 cents a share compared to $11 million and 6 cents a share a year earlier. The company stated that the increase in net income was primarily due to higher operating revenues driven by the loss in 2021 from the Guaranteed Flat Bill program during Winter Storm Uri and higher revenues in 2022 from the recovery of capital investments, partially offset by increased depreciation on a growing asset base, and higher operation and maintenance expense.
Natural Gas Midstream Operations contributed net income to OGE Energy Corp. of $230 million, or $1.15 per share in the first quarter, compared to net income of $38 million, or $0.19 per share in the same period 2021.The increase in net income was primarily due to a $282.3 million pre-tax unrealized mark-to-market gain on OGE Energy’s investment in Energy Transfer’s equity securities, partially offset by a decrease in equity in earnings of Enable, which was driven by the merger of Enable and Energy Transfer closing in December 2021, and higher income tax expense.
Subsequent to March 31, 2022, OGE began the exit of its Energy Transfer investment. Through the end of April 2022, OGE has sold 21.75 million units of Energy Transfer limited partner units, resulting in pre-tax net proceeds of $246 million and a remaining ownership percentage of approximately two percent based on the latest publicly available information filed by Energy Transfer.
OG&E’s 2022 earnings guidance is unchanged and is between approximately $375 million to $395 million, or $1.87 to $1.97 per average diluted share.
Source: press release