OGE Energy Corp
) second quarter earnings of 50 cents per share missed the Zacks
Consensus Estimate by 3.8% but improved 8.7% from the
year-ago earnings of 46 cents per share.
Oge Energy Corp - Earnings Surprise |
The year-over-year improvement was primarily due to robust
contribution from the natural gas midstream operations. The
midstream business contributed 12 cents to the reported quarter
earnings, up from 7 cents in the year-ago quarter.
OGE Energy's operating revenues in the second quarter 2014
decreased 16.7% year over year to $611.8 million. However,
the reported figure was ahead of the Zacks Consensus Estimate of
$595 million by 2.8%.
Total sales in the reported quarter were 7.6 million megawatt-hour
(MWH) versus 6.9 million MWH in the prior-year quarter. This upside
resulted from higher commercial and off-system sales.
Cost of sales in the reported quarter was $270.9 million, down
26.9% year over year.
Total operating expenses in the quarter under review decreased 9.4%
year over year to $199.1 million. Operating income of $141.8
million declined 1.5% year over year.
Interest expense of $39.4 million increased 5.6% year over year.
OGE Energy maintained its consolidated earnings guidance for 2014
in the range of $1.94 to $2.06 per average diluted share.
OG&E, the regulated utility, is expected to earn $1.46 to $1.52
per share in 2014 assuming normal weather. OGE Enogex Holdings is
expected to earn 49 cents to 55 cents per share in 2014. The loss
at its holding company is expected to be 1 cent.
OGE Energy's 2014 earnings guidance assumes normal weather for the
remainder of the year and the dilution associated with the initial
public offering of
Enable Midstream Partners.
Public Service Enterprise Group Inc.
) reported second quarter 2014 operating earnings of 49 cents per
share, below the Zacks Consensus Estimate of 53 cents by 7.5%
) posted second quarter 2014 operational earnings of $1.11 per
share, lagging the Zacks Consensus Estimate of $1.14 by 2.6%.
OGE Energy missed our earnings expectation but the buoyant economy
in its service territories helped the company to add more than
9,000 customers from the year-ago period. Weather normalized sales
grew 1.5%, in the reported quarter, which is definitely
The company has plans to invest nearly $3 billion over the 2014 -
2018 time frame. We believe systematic capital investments will not
only strengthen the existing infrastructure of the company but also
make its operations more environment friendly.
OGE Energy currently has a Zacks Rank #3 (Hold).
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