On November 2, 2023, OGE Energy Corp (OGE, Financial) reported its third-quarter earnings. The company reported earnings of $1.20 per diluted share for the three months ending September 30, 2023, a decrease from $1.31 per diluted share in the same period of 2022. The earnings for the third quarter of 2022 included net income of $0.08 per diluted share from natural gas midstream operations, which OGE Energy fully exited in 2022 through the sale of all Energy Transfer units.
Financial Performance
OG&E, a regulated electric company, contributed earnings of $1.22 per diluted share in the third quarter, compared to earnings of $1.26 per diluted share in the third quarter 2022. The decrease in net income was primarily due to milder weather compared to the third quarter of 2022, as well as higher depreciation and interest expense on a growing asset base. However, OG&E’s results benefitted from strong weather-normal load growth and higher operating revenues from the recovery of capital investments.
Other operations, which includes the holding company, contributed a loss of $0.02 per diluted share compared to a loss of $0.03 per diluted share in the third quarter 2022. The decrease in net loss was primarily due to lower income tax expense as a result of a 2022 consolidating tax benefit related to OGE Energy's former investment in Energy Transfer, partially offset by higher interest expense related to increased short-term debt.
Company Outlook
OGE Energy has increased and narrowed its 2023 earnings guidance. The company’s 2023 OG&E electric company earnings guidance midpoint and range have been increased to $2.09 to $2.13 per average diluted share, up from the previously issued guidance of $1.99 to $2.09 per average diluted share. OGE Energy’s consolidated earnings guidance midpoint and range for 2023 have been increased and narrowed to $2.02 to $2.07 per average diluted share, up from $1.93 to $2.07 per average diluted share.
CEO Commentary
“With a warmer than normal summer, I’m proud of our team’s delivery of safe and reliable electricity to our customers every day, without the calls for public conservation seen in other parts of the country”, said Sean Trauschke, OGE Energy Corp. Chairman, President and CEO. “Due to the benefit of excellent operational execution of our team, diversified growth in our communities, and a hot summer, we are increasing our 2023 earnings guidance.”
Financial Tables
OGE Energy Corp reported operating revenues of $945.4 million for the third quarter of 2023, compared to $1,270.8 million for the same period in 2022. The company's net income was $241.9 million or $1.20 per diluted share in the third quarter, compared to earnings of $262.8 million, or $1.31 per diluted share, in the same period 2022.
OG&E contributed net income of $246.1 million, or $1.22 per diluted share, in the third quarter compared to $253.1 million, or $1.26 per diluted share, in the same period 2022. Other Operations resulted in a loss of $4.2 million, or $0.02 per diluted share, in the third quarter compared to a loss of $6.4 million, or $0.03 per diluted share, in the same period 2022.
Explore the complete 8-K earnings release (here) from OGE Energy Corp for further details.
