OGE Energy Corp. reports second quarter 2024 results
OGE Energy Corp. (NYSE: OGE) reported second quarter 2024 earnings of $0.51 per diluted share, up from $0.44 in Q2 2023. OG&E, its regulated electric company, contributed $0.54 per share, an increase from $0.46 in the same period last year. The company's net income rose to $102.3 million, compared to $88.4 million in Q2 2023.
The improved performance was attributed to warmer weather and strong load growth. OGE Energy reaffirmed its 2024 consolidated earnings guidance of $2.06 to $2.18 per diluted share, expecting results in the top half of this range due to strong first-half performance. The company serves approximately 902,000 customers in Oklahoma and western Arkansas.
OGE Energy Corp. (NYSE: OGE) ha riportato un utile del secondo trimestre 2024 di $0.51 per azione diluita, in aumento rispetto a $0.44 nel Q2 2023. OG&E, la sua compagnia elettrica regolamentata, ha contribuito con $0.54 per azione, un aumento rispetto a $0.46 nello stesso periodo dell'anno scorso. Il reddito netto dell'azienda è cresciuto a $102.3 milioni, rispetto a $88.4 milioni nel Q2 2023.
Il miglioramento delle performance è stato attribuito a temperature più elevate e a una forte crescita della domanda. OGE Energy ha confermato le sue previsioni di utile consolidato per il 2024 di $2.06 a $2.18 per azione diluita, prevedendo risultati nella parte alta di questo intervallo grazie a un forte andamento nel primo semestre. L'azienda serve circa 902.000 clienti in Oklahoma e nella parte occidentale dell'Arkansas.
OGE Energy Corp. (NYSE: OGE) reportó una ganancia del segundo trimestre de 2024 de $0.51 por acción diluida, un aumento desde $0.44 en el Q2 2023. OG&E, su compañía eléctrica regulada, contribuyó con $0.54 por acción, un incremento desde $0.46 en el mismo período del año anterior. Los ingresos netos de la compañía aumentaron a $102.3 millones, en comparación con $88.4 millones en el Q2 2023.
El rendimiento mejorado se atribuyó a temperaturas más cálidas y un fuerte crecimiento de la demanda. OGE Energy reafirmó su guía de ganancias consolidadas para 2024 de $2.06 a $2.18 por acción diluida, esperando resultados en la mitad superior de este rango debido al sólido rendimiento del primer semestre. La empresa atiende a aproximadamente 902,000 clientes en Oklahoma y el oeste de Arkansas.
OGE Energy Corp. (NYSE: OGE)는 2024년 2분기 희석 주당 순이익이 $0.51로, 2023년 2분기 $0.44에서 증가했다고 보고했습니다. 규제된 전력 회사인 OG&E는 작년 같은 기간의 $0.46에서 증가한 $0.54를 기여했습니다. 회사의 순이익은 $102.3 백만으로 증가했으며, 이는 2023년 2분기의 $88.4 백만에 비해 높습니다.
개선된 성과는 따뜻한 날씨와 강한 수요 증가로 인한 것으로 분석되었습니다. OGE Energy는 2024년 통합 순이익 가이던스를 희석 주당 $2.06에서 $2.18로 재확인하며, 상반기 성과가 강력했기 때문에 이 범위의 상단에서 결과를 기대하고 있습니다. 이 회사는 오클라호마와 아칸소 서부에서 약 902,000명의 고객에게 서비스를 제공합니다.
OGE Energy Corp. (NYSE: OGE) a rapporté un bénéfice au deuxième trimestre 2024 de 0,51 $ par action diluée, en hausse par rapport à 0,44 $ au T2 2023. OG&E, sa société d'électricité régulée, a contribué avec 0,54 $ par action, en augmentation par rapport à 0,46 $ au même période l'année dernière. Le revenu net de l'entreprise a augmenté à 102,3 millions de dollars, contre 88,4 millions de dollars au T2 2023.
Cette performance améliorée a été attribuée à un temps plus chaud et à une forte croissance de la demande. OGE Energy a réaffirmé ses prévisions de bénéfices consolidés pour 2024 de 2,06 à 2,18 $ par action diluée, en prévoyant des résultats dans la partie supérieure de cette fourchette grâce à une solide performance du premier semestre. L'entreprise sert environ 902 000 clients en Oklahoma et dans l'ouest de l'Arkansas.
OGE Energy Corp. (NYSE: OGE) berichtete von einem Gewinn im zweiten Quartal 2024 von $0.51 pro verwässerter Aktie, ein Anstieg von $0.44 im Q2 2023. OG&E, das regulierte Elektrizitätsunternehmen, steuerte $0.54 pro Aktie bei, ein Anstieg von $0.46 im gleichen Zeitraum des letzten Jahres. Der Nettogewinn des Unternehmens stieg auf $102.3 Millionen, verglichen mit $88.4 Millionen im Q2 2023.
Die verbesserte Leistung wurde auf wärmeres Wetter und starkes Nachfragewachstum zurückgeführt. OGE Energy bestätigte seine konsolidierte Gewinnprognose für 2024 von $2.06 bis $2.18 pro verwässerter Aktie, da Ergebnisse im oberen Bereich dieser Spanne aufgrund einer starken Leistung im ersten Halbjahr erwartet werden. Das Unternehmen bedient etwa 902.000 Kunden in Oklahoma und im westlichen Arkansas.
- Earnings per share increased from $0.44 in Q2 2023 to $0.51 in Q2 2024
- OG&E's contribution to earnings rose from $0.46 to $0.54 per diluted share
- Net income grew from $88.4 million to $102.3 million year-over-year
- Strong load growth and warmer weather positively impacted results
- 2024 earnings guidance reaffirmed, with expectations in the top half of the range
- Higher depreciation on growing asset base partially offset earnings growth
- Other Operations segment loss increased from $0.02 to $0.03 per diluted share
- Higher interest expense impacted the Other Operations segment negatively
Insights
OGE Energy's Q2 2024 results show solid growth, with earnings per share increasing from
The company's reaffirmed 2024 guidance of
OGE's performance underscores a broader trend in the utility sector: the impact of climate change on energy demand. The warmer than normal weather contributing to earnings growth highlights the increasing importance of weather patterns in utility financial performance. This trend may continue, potentially benefiting utilities with significant cooling load exposure.
The company's strong load growth is particularly noteworthy. In an industry often characterized by slow growth, OGE's ability to expand its customer base and increase demand is a positive sign. This growth, combined with the company's focus on maintaining affordability and reliability, positions OGE well in its service territories. However, investors should monitor how increased demand might impact future capital expenditure needs and regulatory relationships.
- OG&E, a regulated electric company, contributed earnings of
$0.54 $0.46 - Other operations, which includes the holding company, contributed a loss of
$0.03 $0.02
"Consistent, strong operational performance and increased demand for electricity from our growing service area delivered solid results for the second quarter," said Sean Trauschke, President and CEO of OGE Energy Corp. "These results further demonstrate the company's unwavering commitment to deliver affordable, reliable, and safe energy to our customers."
Second Quarter 2024 results
OG&E contributed net income of
Other Operations resulted in a loss of
OGE Energy's net income was
2024 Outlook
OGE Energy's 2024 consolidated earnings guidance is reaffirmed and remains projected to be within a range of
Conference Call Webcast
OGE Energy Corp. will host an earnings and business update conference call on Wednesday, August 7, 2024, at 8 a.m. CDT. The conference will be available through the Investor Center at www.oge.com.
OGE Energy Corp. is the parent company of OG&E, a regulated electric company with approximately 902,000 customers in
Some of the matters discussed in this news release may contain forward-looking statements that are subject to certain risks, uncertainties, and assumptions. Such forward-looking statements are intended to be identified in this document by the words "anticipate," "believe," "estimate," "expect," "forecast," "intend," "objective," "plan," "possible," "potential," "project," "target" and similar expressions. Actual results may vary materially. Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to:
general economic conditions, including the availability of credit, access to existing lines of credit, access to the commercial paper markets, actions of rating agencies and inflation rates, and their impact on capital expenditures; the ability of the Company and its subsidiaries to access the capital markets and obtain financing on favorable terms, as well as inflation rates and monetary fluctuations; the ability to obtain timely and sufficient rate relief to allow for recovery of items such as capital expenditures, fuel and purchased power costs, operating costs, transmission costs and deferred expenditures; prices and availability of electricity, coal and natural gas; competitive factors, including the extent and timing of the entry of additional competition in the markets served by the Company, potentially through deregulation; the impact on demand for the Company's services resulting from cost-competitive advances in technology, such as distributed electricity generation and customer energy efficiency programs; technological developments, changing markets and other factors that result in competitive disadvantages and create the potential for impairment of existing assets; factors affecting utility operations such as unusual weather conditions; catastrophic weather-related damage; unscheduled generation outages; unusual maintenance or repairs; unanticipated changes to fossil fuel, natural gas or coal supply costs or availability due to higher demand, shortages, transportation problems or other developments; environmental incidents; or electric transmission or gas pipeline system constraints; availability and prices of raw materials and equipment for current and future construction projects; the effect of retroactive pricing of transactions in the SPP markets or adjustments in market pricing mechanisms by the SPP; federal or state legislation and regulatory decisions and initiatives that affect cost and investment recovery, have an impact on rate structures or affect the speed and degree to which competition enters the Company's markets; environmental laws, safety laws or other regulations that may impact the cost of operations, restrict or change the way the Company's facilities are operated or result in stranded assets; the ability of the Company to meet future capacity requirements mandated by the SPP, which could be impacted by future load growth, environmental regulations recently finalized by the EPA, and the availability of resources; changes in accounting standards, rules or guidelines; the discontinuance of accounting principles for certain types of rate-regulated activities; the cost of protecting assets against, or damage due to, terrorism or cyberattacks, including losing control of our assets and potential ransoms, and other catastrophic events; changes in the use, perception or regulation of generative artificial intelligence technologies, which could limit our ability to utilize such technology, create risk of enhanced regulatory scrutiny, generate uncertainty around intellectual property ownership, licensing or use, or which could otherwise result in risk of damage to our business, reputation or financial results; creditworthiness of suppliers, customers and other contractual parties, including large, new customers from emerging industries such as cryptocurrency; social attitudes regarding the electric utility and power industries; identification of suitable investment opportunities to enhance shareholder returns and achieve long-term financial objectives through business acquisitions and divestitures; increased pension and healthcare costs; national and global events that could adversely affect and/or exacerbate macroeconomic conditions, including inflationary pressures, rising interest rates, supply chain disruptions, economic recessions, pandemic health events and uncertainty surrounding continued hostilities or sustained military campaigns, and their collateral consequences; costs and other effects of legal and administrative proceedings, settlements, investigations, claims and matters, including, but not limited to, those described in the Company's Form 10-Q for the quarter ended June 30, 2024; and other risk factors listed in the reports filed by the Company with the Securities and Exchange Commission, including those listed within the Company's most recent Form 10-K for the year ended December 31, 2023.
Note: Condensed Consolidated Statements of Income for OGE Energy Corp., Condensed Statements of Income and Comprehensive Income for Oklahoma Gas & Electric Company, and Financial and Statistical Data for Oklahoma Gas & Electric Company attached.
OGE ENERGY CORP. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
(Unaudited) | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
(In millions, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||
OPERATING REVENUES | ||||||||
Revenues from contracts with customers | $ 644.1 | $ 589.2 | $ 1,226.7 | $ 1,133.8 | ||||
Other revenues | 18.5 | 15.8 | 32.7 | 28.4 | ||||
Operating revenues | 662.6 | 605.0 | 1,259.4 | 1,162.2 | ||||
FUEL, PURCHASED POWER AND DIRECT TRANSMISSION EXPENSE | 193.9 | 181.8 | 426.1 | 382.4 | ||||
OPERATING EXPENSES | ||||||||
Other operation and maintenance | 130.4 | 128.3 | 262.8 | 258.7 | ||||
Depreciation and amortization | 135.5 | 124.1 | 264.7 | 245.3 | ||||
Taxes other than income | 26.9 | 24.4 | 55.9 | 52.9 | ||||
Operating expenses | 292.8 | 276.8 | 583.4 | 556.9 | ||||
OPERATING INCOME | 175.9 | 146.4 | 249.9 | 222.9 | ||||
OTHER INCOME (EXPENSE) | ||||||||
Allowance for equity funds used during construction | 6.6 | 5.1 | 11.3 | 9.6 | ||||
Other net periodic benefit income | 1.6 | 1.1 | 3.3 | 2.6 | ||||
Other income | 8.9 | 12.7 | 13.4 | 29.6 | ||||
Other expense | (6.6) | (4.4) | (11.1) | (10.9) | ||||
Net other income | 10.5 | 14.5 | 16.9 | 30.9 | ||||
INTEREST EXPENSE | ||||||||
Interest on long-term debt | 54.9 | 52.9 | 106.9 | 101.0 | ||||
Allowance for borrowed funds used during construction | (3.4) | (1.3) | (6.8) | (3.4) | ||||
Interest on short-term debt and other interest charges | 13.4 | 6.1 | 25.0 | 7.9 | ||||
Interest expense | 64.9 | 57.7 | 125.1 | 105.5 | ||||
INCOME BEFORE TAXES | 121.5 | 103.2 | 141.7 | 148.3 | ||||
INCOME TAX EXPENSE | 19.2 | 14.8 | 20.8 | 21.6 | ||||
NET INCOME | $ 102.3 | $ 88.4 | $ 120.9 | $ 126.7 | ||||
BASIC AVERAGE COMMON SHARES OUTSTANDING | 200.8 | 200.3 | 200.6 | 200.3 | ||||
DILUTED AVERAGE COMMON SHARES OUTSTANDING | 201.4 | 200.8 | 201.0 | 200.8 | ||||
BASIC EARNINGS PER AVERAGE COMMON SHARE | $ 0.51 | $ 0.44 | $ 0.60 | $ 0.63 | ||||
DILUTED EARNINGS PER AVERAGE COMMON SHARE | $ 0.51 | $ 0.44 | $ 0.60 | $ 0.63 | ||||
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||
(Unaudited) | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
(In millions) | 2024 | 2023 | 2024 | 2023 | ||||
OPERATING REVENUES | ||||||||
Revenues from contracts with customers | $ 644.1 | $ 589.2 | $ 1,226.7 | $ 1,133.8 | ||||
Other revenues | 18.5 | 15.8 | 32.7 | 28.4 | ||||
Operating revenues | 662.6 | 605.0 | 1,259.4 | 1,162.2 | ||||
FUEL, PURCHASED POWER AND DIRECT TRANSMISSION EXPENSE | 193.9 | 181.8 | 426.1 | 382.4 | ||||
OPERATING EXPENSES | ||||||||
Other operation and maintenance | 130.2 | 128.6 | 262.6 | 260.1 | ||||
Depreciation and amortization | 135.5 | 124.1 | 264.7 | 245.3 | ||||
Taxes other than income | 26.9 | 23.5 | 55.9 | 50.6 | ||||
Operating expenses | 292.6 | 276.2 | 583.2 | 556.0 | ||||
OPERATING INCOME | 176.1 | 147.0 | 250.1 | 223.8 | ||||
OTHER INCOME (EXPENSE) | ||||||||
Allowance for equity funds used during construction | 6.6 | 5.1 | 11.3 | 9.6 | ||||
Other net periodic benefit income | 1.8 | 1.6 | 3.6 | 3.2 | ||||
Other income | 3.2 | 8.3 | 5.2 | 18.4 | ||||
Other expense | (1.4) | (1.8) | (3.3) | (2.7) | ||||
Net other income | 10.2 | 13.2 | 16.8 | 28.5 | ||||
INTEREST EXPENSE | ||||||||
Interest on long-term debt | 51.3 | 51.6 | 102.4 | 98.1 | ||||
Allowance for borrowed funds used during construction | (3.4) | (1.3) | (6.8) | (3.4) | ||||
Interest on short-term debt and other interest charges | 7.0 | 1.8 | 10.7 | 3.1 | ||||
Interest expense | 54.9 | 52.1 | 106.3 | 97.8 | ||||
INCOME BEFORE TAXES | 131.4 | 108.1 | 160.6 | 154.5 | ||||
INCOME TAX EXPENSE | 22.1 | 16.2 | 26.1 | 22.8 | ||||
NET INCOME | $ 109.3 | $ 91.9 | $ 134.5 | $ 131.7 | ||||
Other comprehensive income, net of tax | — | — | — | — | ||||
COMPREHENSIVE INCOME | $ 109.3 | $ 91.9 | $ 134.5 | $ 131.7 | ||||
FINANCIAL AND STATISTICAL DATA | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
(Dollars in millions) | 2024 | 2023 | 2024 | 2023 | ||||
Operating revenues by classification: | ||||||||
Residential | $ 247.2 | $ 223.1 | $ 475.3 | $ 434.8 | ||||
Commercial | 183.9 | 158.2 | 337.3 | 294.4 | ||||
Industrial | 56.8 | 55.1 | 111.0 | 109.5 | ||||
Oilfield | 48.2 | 47.9 | 98.3 | 96.3 | ||||
Public authorities and street light | 59.5 | 54.1 | 111.8 | 100.3 | ||||
System sales revenues | 595.6 | 538.4 | 1,133.7 | 1,035.3 | ||||
Provision for tax refund | — | 0.6 | — | 2.0 | ||||
Integrated market | 17.1 | 18.8 | 32.1 | 31.5 | ||||
Transmission | 42.5 | 36.1 | 78.1 | 71.3 | ||||
Other | 7.4 | 11.1 | 15.5 | 22.1 | ||||
Total operating revenues | $ 662.6 | $ 605.0 | $ 1,259.4 | $ 1,162.2 | ||||
MWh sales by classification (In millions) | ||||||||
Residential | 2.3 | 2.1 | 4.6 | 4.3 | ||||
Commercial | 2.5 | 2.1 | 4.6 | 4.0 | ||||
Industrial | 1.1 | 1.0 | 2.1 | 2.0 | ||||
Oilfield | 1.1 | 1.1 | 2.2 | 2.2 | ||||
Public authorities and street light | 0.8 | 0.7 | 1.5 | 1.4 | ||||
System sales | 7.8 | 7.0 | 15.0 | 13.9 | ||||
Integrated market | 0.2 | 0.3 | 0.4 | 0.4 | ||||
Total sales | 8.0 | 7.3 | 15.4 | 14.3 | ||||
Number of customers | 902,303 | 891,755 | 902,303 | 891,755 | ||||
Weighted-average cost of energy per kilowatt-hour (In cents) | ||||||||
Natural gas | 2.205 | 2.619 | 2.710 | 3.187 | ||||
Coal | 3.247 | 3.500 | 3.172 | 3.450 | ||||
Total fuel | 2.260 | 2.663 | 2.670 | 3.082 | ||||
Total fuel and purchased power | 2.321 | 2.360 | 2.641 | 2.536 | ||||
Degree days (A) | ||||||||
Heating - Actual | 117 | 234 | 1,812 | 1,926 | ||||
Heating - Normal | 249 | 249 | 2,136 | 2,136 | ||||
Cooling - Actual | 740 | 571 | 752 | 577 | ||||
Cooling - Normal | 553 | 553 | 563 | 563 | ||||
(A) Degree days are calculated as follows: The high and low degrees of a particular day are added together and then averaged. If the calculated average is above 65 degrees, then the difference between the calculated average and 65 is expressed as cooling degree days, with each degree of difference equaling one cooling degree day. If the calculated average is below 65 degrees, then the difference between the calculated average and 65 is expressed as heating degree days, with each degree of difference equaling one heating degree day. The daily calculations are then totaled for the particular reporting period. |
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SOURCE OGE Energy Corp.
FAQ
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