The following excerpt is from the company's SEC filing.
net income was $55 million in the first quarter, compared to approximately $36 million in the year-ago quarter.
net income was approximately $31 million in the first quarter, compared to approximately $16 million in the comparable quarter last year. The primary drivers for the increase in net income were lower operation and maintenance expense, more favorable weather compared to the same period in 2017, and new rates implemented in May 2017. These increases were partially offset by higher depreciation and interest expense.
OGE Energy Holdings (primarily Natural Gas Midstream Operations)
contributed net income to OGE Energy Corp. of $24 million for the first quarter of 2018 compared to $20 million for the same period in 2017. Higher net income was primarily due to lower income tax expense. Volumes at Enable Midstream were higher across all business segments, particularly gathering and processing. In addition, Enable Midstream issued cash distributions to OGE of approximately $35 million in each of the first quarters of 2018 and 2017.
2018 Earnings Outlook
The Company reaffirms its 2018 earnings guidance between approximately $380 million and $410 million of net income, or $1.90 to $2.05 per average diluted share. More information regarding the Company’s 2018 earnings guidance is contained in the Company's 2017 Form 10-K and Form 10-Q for the quarter ended March 31, 2018 as filed with the Securities and Exchange Commission.
Conference Call Webcast
OGE Energy will host a conference call for discussion of the results on Thursday, May 3, at 8 a.m. CST. The conference will be available through
. OGE Energy Corp. is the parent company of OG&E, a regulated electric utility with approximately 843,000 customers in Oklahoma and western Arkansas. In addition, OGE holds a 25.6 percent limited partner interest and a 50 percent general partner interest of Enable Midstream, created by the merger of OGE's Enogex LLC midstream subsidiary and the pipeline and field services businesses of Houston-based CenterPoint Energy.
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", "intend", "objective", "plan", "possible", "potential", "project" and similar expressions. Actual results may vary materially. Factors that could cause actual results to differ materially 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 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 costs, operating costs, transmission costs and deferred expenditures; prices and availability of electricity, coal, natural gas and NGLs; the timing and extent of changes in commodity prices, particularly natural gas and NGLs, the competitive effects of the available pipeline capacity in the regions Enable serves, and the effects of geographic and seasonal commodity price differentials, including the effects of these circumstances on re-contracting available capacity on Enable's interstate pipelines; the timing and extent of changes in the supply of natural gas, particularly supplies available for gathering by Enable's gathering and processing
business and transporting by Enable's interstate pipelines, including the impact of natural gas and NGLs prices on the level of drilling and production activities in the regions Enable serves; business conditions in the energy and natural gas midstream industries, including the demand for natural gas, NGLs, crude oil and midstream services; competitive factors including the extent and timing of the entry of additional competition in the markets served by the Company; the impact on demand for our 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 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 or restrict or change the way the Company operates its facilities; 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 and other catastrophic events; creditworthiness of suppliers, customers and other contractual parties; social attitudes regarding the utility, natural gas 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; costs and other effects of legal and administrative proceedings, settlements, investigations, claims and matters; difficulty in making accurate assumptions and projections regarding future revenues and costs associated with the Company's equity investment in Enable that the Company does not control; and other risk factors listed in the reports filed by the Company with the Securities and Exchange Commission including those listed in Risk Factors in the Company's Form 10-K for the year ended December 31, 2017 and in the Company's Form 10-Q for the quarter ended March 31, 2018.
Note: Consolidated Statements of Income, Financial and Statistical Data attached.
OGE ENERGY CORP.
STATEMENTS OF INCOME
Three Months Ended March 31,
(In millions except per share data)
Revenues from contracts with customers
Revenues from alternative revenue programs
COST OF SALES
Other operation and maintenance
Depreciation and amortization
Taxes other than income
Total operating expenses
OTHER INCOME (EXPENSE)
Equity in earnings of unconsolidated affiliates
Allowance for equity funds used during construction
Other net periodic pension and postretirement benefit (cost)
Net other income
Interest on long-term debt
Allowance for borrowed funds used during construction
Interest on short-term debt and other interest charges
INCOME BEFORE TAXES
INCOME TAX EXPENSE
BASIC AVERAGE COMMON SHARES OUTSTANDING
DILUTED AVERAGE COMMON SHARES OUTSTANDING
BASIC EARNINGS PER AVERAGE COMMON SHARE
DILUTED EARNINGS PER AVERAGE COMMON SHARE
DIVIDENDS DECLARED PER COMMON SHARE
Oklahoma Gas and Electric Company
(Dollars in millions)
Operating revenues by classification:
Public authorities and street light
Sales for resale
System sales revenues
Provision for rate refund
Total operating revenues
MWh sales by classification
Number of customers
Weighted-average cost of energy per kilowatt-hour
Total fuel and purchased power
Heating - Actual
Heating - Normal
Cooling - Actual
Cooling - Normal
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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