OGE Energy Corp. , the parent company of Oklahoma Gas and Electric Company reported earnings of $1.31 per diluted share during the three months ended September 30, 2022, compared to $1.26 per diluted share in the same period in 2021.
OGE Energy’s net income was $262.8 million or $1.31 per diluted share in the third quarter, compared to earnings of $252.5 million or $1.26 per diluted share in the same period a year ago.
The company said that in the third quarter, OG&E contributed earnings of $1.26 per diluted share compared with earnings of $1.12 a share a year earlier.
Other operations, which includes the holding company, contributed a loss of $0.03 per diluted share in the third quarter, compared to a loss of $0.01 per diluted share in the third quarter 2021.
Natural Gas Midstream Operations contributed earnings of $0.08 per diluted share in the third quarter, compared to earnings of $0.15 per diluted share in the third quarter 2021.
“We are sensitive to the impacts the inflationary environment is having on all of us, including our customers and the communities we serve. Our continued infrastructure investments and program offerings provide customers more reliable, resilient and secure electricity and allows them to better manage their energy usage and monthly bill,” said Sean Trauschke, OGE Energy Corp. Chairman, President and CEO.
OG&E’s net income during the quarter was $253.1 million, up from the $223.8 million in the same period of 2021. The increase in net income was primarily due to higher operating revenues driven by warmer weather and revenues from the recovery of capital investments, partially offset by higher income tax expense and higher depreciation and amortization expense.
Other Operations resulted in a loss of $6.4 million, or $0.03 per diluted share in the third quarter compared to a loss of $2.1 million or $0.01 per diluted share in the same period of 2021. The increase in the net loss was due to higher income tax expense, primarily from the reversal of an interim period consolidating tax benefit that was recorded in the first quarter of 2022.
Natural Gas Midstream Operations contributed net income of $16.1 million, or $0.08 per diluted share in the third quarter, compared to net income of $30.8 million, or $0.15 per diluted share in the same period of 2021. The decrease in net income was impacted by the removal of equity in earnings of Enable, which was driven by the merger of Enable and Energy Transfer closing in December 2021 and partially offset by a gain on OGE Energy’s investment in Energy Transfer’s equity securities.
As of September 30, 2022, OGE Energy sold all 95.4 million Energy Transfer limited partner units acquired in the merger between Energy Transfer and Enable in December 2021. OGE Energy no longer has any ownership interest in Natural Gas Midstream Operations.
OG&E is projected to earn approximately $417.0 million to$425.0 million, or $2.08 to $2.12 per average diluted share, with a midpoint of $421.0 million, or $2.10 per average diluted share, in 2022. OG&E has significant seasonality in its earnings due to weather on a year over year basis.
As indicated in its 2021 Form 10-K, OGE Energy did not issue guidance for its natural gas midstream operations segment and therefore did not issue 2022 consolidated earnings guidance. OGE Energy expects a loss of $2.0 million to $6.0 million, or $0.01 to $0.03 per average diluted share, at the holding company in 2022.
Source: OGE press release