Increased utility bills in the past year helped OGE Energy Corp., the parent company of Oklahoma Gas and Electric Company to obtain earnings of $2.19 per diluted share in 2024, compared to $2.07 per diluted share in 2023.
OG&E, a regulated electric company, contributed earnings of $2.33 per diluted share in 2024, compared to earnings of $2.12 per diluted share in 2023.
“Excellent operational execution and our dedicated team delivered strong results for 2024,” said Sean Trauschke, Chairman, President and CEO of OGE Energy Corp. “Customers experienced outstanding reliability from the grid strengthening and power plant investments we have made over the last several
years.”
He said outstanding customer growth and demand for electricity support the company’s continued efforts to drive economic and community growth across our service area.
“As we complete two new natural-gas power generation units at our Horseshoe Lake plant, we will continue to meet the growing energy needs in our region, create jobs and tax dollars to strengthen communities and serve new businesses.”
Discussion of 2024 Results
OG&E contributed net income of $469.9 million, or $2.33 per diluted share, in 2024 compared to $426.4 million, or $2.12 per diluted share, in 2023. The increase in net income was primarily due to exceptional load growth and higher operating revenues driven by the recovery of capital investments, partially
offset by higher depreciation and interest expense on a growing asset base, higher income taxes, and lower other income.
Other Operations resulted in a loss of $28.4 million, or $0.14 per diluted share, in 2024 compared to a loss of $9.6 million, or $0.05 per diluted share, in 2023. The increase in net loss was primarily due to higher interest expense and lower net other income.
OGE Energy’s net income was $441.5 million or $2.19 per diluted share in 2024, compared to earnings of $416.8 million, or $2.07 per diluted share, in 2023.
Fourth Quarter Results
For the three months ended December 31, 2024, OGE Energy reported net income of $101.9 million, or $0.50 per diluted share, compared with net income of $48.2 million, or $0.24 per diluted share, in the same period of 2023.
OG&E reported net income of $110.4 million, or $0.55 per diluted share, compared with net income of $48.6 million, or $0.24 per diluted share, in the same period of 2023. The increase in net income was primarily due to higher operating revenues driven by the recognition of the interim order received in the fourth quarter 2024 approving the uncontested settlement agreement in the Oklahoma rate review, as well as exceptional load growth, and lower operation and maintenance expense, partially offset by higher income taxes and interest expense.
Other operations reported a loss of $8.5 million, or $0.05 per diluted share, compared to a loss of $0.4 million in the same period 2023. The decrease in earnings was primarily due to higher interest expense.
2025 Outlook and Consolidated Earnings per Share Growth Rate
The midpoint of OGE Energy’s consolidated earnings guidance for 2025 is $2.27 per average diluted share, within a range of $2.21 to $2.33 per average diluted share. The Company forecasts earnings for OG&E, the electric company, of $2.43 per average diluted share and earnings for the holding company of a
loss of $0.16 per average diluted share. The Company expects to grow consolidated earnings per share annually between 5% and 7% from the midpoint of 2025’s guidance range.
The guidance assumes, among other things, approximately 202.1 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.
On February 18, 2025, the Company’s Board of Directors approved a second quarter dividend of $0.42125 per common share of stock, to be paid April 25, 2025, to shareholders of record on April 7, 2025.