OGE Energy fell short of Wall Street expectations Friday when it reported a fourth-quarter profit of $29.4 million and earnings of 15 cents/share. According to Zacks Investment Research, analysts had expected earnings of 23 cents/share.
The Oklahoma City-based parent of Oklahoma Gas & Electric recorded $447.1 million in revenue for the quarter. For the year, OGE posted a profit of $271.3 million ($1.36/share), compared with earnings of $395.8 million ($1.98/share) in 2014.
OGE shares closed down $1.88 Friday at $25.08, a 7% drop. It began the year at $26.29/share.
CEO Sean Trauschke attributed the earnings shortfall to low energy prices.
“The significant drop in commodity prices had an impact on our business as well as our communities,” he said in a statement. “However, we have made significant investments to improve our business and our company is better positioned to handle these challenges.”
Trauschke told analysts Friday the company is on target to continue to grow its dividend of 10% through 2019.
OG&E has approximately 825,000 customers in Oklahoma and western Arkansas. Its OGE parent also holds a 26.3% limited partner interest and a 50% general partner interest in Enable Midstream Partners.
— Tom Kleckner
