Oklahoma City-based OGE Energy said last week that a strong regional economy and positive regulatory developments led to an improved second quarter for the company, which reported earnings of $110 million ($0.55/share), compared to $105 million ($0.52/share) the year prior.
Earnings just missed Zacks Investment Research’s consensus estimate of 57 cents/share.
CEO Sean Trauschke said Oklahoma Gas & Electric continues to add customers near its historical average of 1%, the state’s unemployment numbers are at or under the national average and tax revenues are “now growing solidly again.”
“We are seeing growth on our system driven by our low rates and quality service. I’m very proud of our team’s work to deliver this competitive advantage to the communities we serve,” Trauschke told financial analysts during an Aug. 9 conference call.
“Our core is solid, our employees are doing a great job, and we’re effectively executing on our plans across every area of the company,” he said.
OGE in June reached a $64 million settlement with the Oklahoma Corporation Commission that provides full recovery of its investment in the newly converted Mustang Energy Center. The plant’s seven gas-fired combustion turbines have had more than 1,200 starts this year, Trauschke said.
OGE Energy Holdings, which includes OGE&’s 25.6% limited partner interest and 50% general partner interest in Enable Midstream Partners, contributed 11 cents/share to earnings and $35 million in cash distributions.
“Enable continues to perform very well and their financial metrics are strong,” Trauschke said. He told analysts OGE has not changed its thinking around how the petroleum-gathering company is organized.
— Tom Kleckner
