Lower earnings in the fourth quarter and for all of 2023 were reported by OGE Energy Corp., parent company of the Oklahoma Gas and Electric Company. Milder weather played a role in the drop in earnings.
OGE Energy’s fourth quarter net income totaled $48.2 million or 24 cents a share, down from the $50.3 million and 25 cents a share in the same period of 2022. Net income for OG&E was $48.6 million and 24 cents a share, up from the $46.7 million and 23 cents a share in the fourth quarter of 2022.
The company said the net income was “primarily due to higher operating revenues driven by the recovery of capital investments and lower other operation and maintenance expense partially offset by higher interest expense and higher depreciation expense on a growing asset base.”
Other operations reported a loss of $0.4 million in the fourth quarter 2023 compared to net income of $0.1 million in the same period 2022. The decrease in earnings was primarily due to higher interest expense related to increased short-term debt partially offset by a higher income tax benefit related to the former natural gas midstream operations recorded in 2023.
For the year, OGE Energy Corps earnings were $2.07 a share compared to $3.32 a share in 2022. Earnings for 2022 included net income of $1.16 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 $2.12 per diluted share in 2023, compared to earnings of $2.19 per diluted share in 2022.
- Other operations, which includes the holding company, contributed a loss of $0.05 per diluted share compared to a loss of $0.03 per diluted share in 2022.
“In 2023, our team delivered outstanding results as we provided safe and reliable electricity to our customers,” said Sean Trauschke, Chairman, President and CEO of OGE Energy Corp. “The fundamentals of our business are strong and our sustainable business model to leverage our low rates and excellent service drives economic growth in Oklahoma and western Arkansas which contributes to a bright future for our company, consistent long-term growth for our shareholders, and ever more reliable service for our customers.”
OG&E contributed net income of $426.4 million, or $2.12 per diluted share, in 2023 compared to $439.5 million, or $2.19 per diluted share, in 2022. The decrease in net income was primarily due to milder weather in 2023, higher depreciation and interest expense on a growing asset base, and increased operation and maintenance expense. These items were partially offset by higher operating revenues driven by the recovery of capital investments, strong load growth and higher net other income.
Other Operations resulted in a loss of $9.6 million, or $0.05 per diluted share, in 2023 compared to a loss of $5.1 million, or $0.03 per diluted share, in 2022. The increase in net loss was primarily due to higher interest expense related to increased short-term debt and partially offset by a higher income tax benefit.
OGE Energy’snet income was $416.8 million or $2.07 per diluted share in 2023, compared to earnings of $665.7 million, or $3.32 per diluted share, in 2022. Earnings for 2022 included net income of $1.16 per diluted share from natural gas midstream operations, which OGE Energy fully exited in 2022 through the sale of all Energy Transfer units.
2024 Outlook and Consolidated Earnings per Share Growth Rate
The midpoint of OGE Energy’s consolidated earnings guidance for 2024 is $2.12 per average diluted share, within a range of $2.06 to $ 2.18 per average diluted share. The Company forecasts earnings for OG&E, the electric company, of $2.22 per average diluted share and earnings for the holding company of a loss of $0.10 per average diluted share.
The guidance assumes, among other things, approximately 201.5 million average diluted shares outstanding and normal weather for the remainder of the year. OG&E has significant seasonality in its earnings due to weather on a year over year basis.
Dividend Declared
On February 19, 2024, the Company’s Board of Directors approved a second quarter dividend of $0.4182 per common share of stock, to be paid April 26, 2024, to shareholders of record on April 8, 2024.
Source: OGE Energy release
