OGE Energy Corp., the parent company of Oklahoma Gas and Electric Company reported earnings $88.4 million and $0.44 per diluted share during the three months that ended June 30, 2023, compared to $73.1 million and $0.36 per diluted share in the same period of 2022.
Earnings for the second quarter of 2022 included a loss of $0.09 per diluted share from natural gas midstream operations, which OGE Energy fully exited in 2022 through the sale of all Energy Transfer units. Beginning in 2023, OGE Energy no longer has a Natural Gas Midstream Operations reporting segment.
- OG&E, a regulated electric company, contributed earnings of $0.46 per diluted share in the second quarter, compared to earnings of $0.50 per diluted share in the second quarter 2022.
- Other operations, which includes the holding company, contributed a loss of $0.02 per diluted share compared to a loss of $0.05 per diluted share in the second quarter 2022.
“Broad business expansion in a number of sectors drives economic growth in the thriving communities across our service area,” said Sean Trauschke, OGE Energy Corp. Chairman, President and CEO.
“When combined with increased electrification from customers of all types, we see sustained growth of electricity demand for the foreseeable future. Our team’s outstanding operational execution keeps us on track to deliver on our 2023 plans.”
Second Quarter 2023
OG&E contributed net income of $91.9 million, or $0.46 per diluted share, in the second quarter compared to $100.7 million, or $0.50 per diluted share, in the same period 2022. The decrease in net income was primarily due to less favorable weather, expected higher depreciation and interest expense on a growing asset base, as well as increased other operation and maintenance expense due in part to timing of activities. These drivers were partially offset by higher operating revenues from the recovery of capital investments, load growth and higher net other income. OG&E continues to experience strong growth, with weather-normal load increasing 3.5% year-over-year in the second quarter 2023.
Other Operations resulted in a loss of $3.5 million, or $0.02 per diluted share, in the second quarter compared to a loss of $8.7 million, or $0.05 per diluted share, in the same period 2022. The decrease in net loss was primarily due to lower income tax expense as a result of a 2022 consolidating tax benefit related to OGE Energy’s former investment in Energy Transfer, partially offset by higher interest expense related to increased short-term debt.
2023 Outlook
OGE Energy’s 2023 earnings guidance is reaffirmed and is projected to be between $387 million to $416 million, or $1.93 to $2.07 per average diluted share, with a midpoint of $402 million, or $2.00 per average diluted share. OG&E is projected to earn approximately $400 million to $421 million, or $1.99 to $2.09 per average diluted share, with a midpoint of $411 million, or $2.04 per average diluted share.
Other Operations (primarily Holding Company) projects a loss of $5 million to $13 million, or $0.02 to $0.06 per average diluted share, with a midpoint of a loss of $9 million, or $0.04 per average diluted share. The guidance assumes, among other things, approximately 201 million average diluted shares outstanding and normal weather for the year. OG&E has significant seasonality in its earnings due to weather on a year over year basis.
Source: press release