OGE Energy Beats on Earnings
OGE Energy Corp. (OGE) reported fourth quarter 2013 earnings per share of 29 cents, surpassing the Zacks Consensus Estimate of 25 cents by 16.0%. The quarterly figure also improved 52.6% from the year-ago profit of 19 cents per share.
In 2013, OGE reported earnings of $1.94 per share compared with $1.79 per share in 2012. The reported figure was also ahead of the Zacks Consensus Estimate of $1.91 per share.
The upswing in the bottom line reflects sizeable returns from the company’s partnership with the Enable midstream.
Total Revenue
OGE Energy’s operating revenues in the fourth quarter declined 41% year over year to $508.9 million. However, the reported figure was ahead of the Zacks Consensus Estimate of $468.0 million.
In 2013, operating revenues were $2.9 billion, down 21.9% from $3.7 billion in 2012 and the reported figure also came in 1.4% below the Zacks Consensus Estimate of $2.8 billion.
Total megawatt-hour (:MWH) sales in the reported quarter were 6.9 MWH versus 6.6 MWH in the prior-year quarter. This upside resulted from higher residential and commercial sales, partially offset by lower industrial sales.
Operational Highlights
Total operating expenses in the quarter under review slipped 27.5% year over year to $203.3 million.
Operating income of $73.3 million declined 24.7% year over year.
Interest expense of $35.3 million declined 16.0% year over year.
Oklahoma Gas and Electric Company (“OG&E”), a division of OGE Energy, contributed earnings of $1.47 per share in 2013, up from $1.41 per share in 2012.
In 2013, OGE Energy's interest in natural gas midstream operations, Enogex, contributed earnings of 50 cents per share compared with 38 cents per share in 2012.
Guidance
OGE Energy provided consolidated earnings guidance for 2014 in the range of $1.94 to $2.06 per average diluted share. The earnings guidance is in sync with the company’s long-term growth rate of 5% to 7%.
Other Releases
Public Service Enterprise Group Inc. or PSEG (PEG) reported fourth quarter operating earnings of 49 cents per share, beating the Zacks Consensus Estimate of 47 cents by 4.3%.
American Electric Power Company Inc. (AEP) reported fourth quarter 2013 operating earnings of 60 cents per share, beating the Zacks Consensus Estimate of 56 cents by 7.1%. The quarterly figure also improved 20% from the year-ago profit of 50 cents per share.
DTE Energy Company (DTE) reported fourth quarter 2013 operating earnings per share of $1.01, beating the Zacks Consensus Estimate by 4.1%. The bottom line also jumped 18.8% year over year from 85 cents per share. The improved performance reflects increased weather-related sales.
Our Take
OGE Energy was able beat to our earnings expectation once more. We expect the buoyant economy in Oklahoma will continue to help expand the company’s customer footprint. In addition, OGE Energy’s aggressive investments in alternative energy will spur its future growth momentum given the current pro-environment drive in the U.S.
The company will capitalize on its midstream capabilities given robust gas production in Oklahoma and the Texas Panhandle region.
Presently, OGE Energy holds a short-term Zacks Rank #2 (Buy).
Read the Full Research Report on OGE
Read the Full Research Report on AEP
Read the Full Research Report on DTE
Read the Full Research Report on PEG
Zacks Investment Research
