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OGE Energy Q1 Earnings Beat Estimates, Revenues Fall - Analyst Blog

OGE Energy Corp.OGE reported first-quarter earnings of 22 cents per share, beating the Zacks Consensus Estimate of 17 cents by 29.4%. Reported earnings declined by 12% year over year.

Oge Energy Corporation - Quarterly EPS | FindTheCompany

Total Revenue

OGE Energy's operating revenues of $480.1 million in the first quarter of 2015 decreased 14.3% from the prior-year figure of $560.4 million.

Operational Highlights

Total sales in the reported quarter were 6.9 million megawatt-hour (MWH) compared with 7.2 million MWH in the prior-year quarter. The decline was due to lower system sales. The company's customer count increased by roughly 1% over the prior year.

Cost of sales in the reported quarter was $211.6 million, down 27.9% year over year.

Total operating expenses in the quarter under review increased 3.4% year over year to $212.1 million due to higher depreciation and amortization expenses (up 13%). Operating income decreased 8.7% to $56.4 million from the year-ago figure of $61.8 million.

Interest expenses were $37.4 million in the reported quarter compared with $35.9 million a year ago.

Other Highlights of the Release

OGE Energy reported a net income of $43.2 million in this quarter, down 12.4% from the prior-year figure of $49.3 million.

OG&E: OG&E's net income was $17 million in the first quarter, compared with $21 million in the same quarter last year. The decline was mainly due to a milder winter as well as higher depreciation and interest expenses. However, growth from new customers partly offset the negatives.

Natural Gas Midstream Operations: This segment's net income was $23 million in the first quarter, down from $29 million a year ago due to lower commodity prices.

Guidance

OGE Energy reaffirmed its consolidated earnings guidance for 2015 in the range of $1.76 to $1.89 per average diluted share.

OG&E, the regulated utility, is expected to earn $1.41 to $1.49 per average diluted share in 2015.

Other Peer Releases

DTE Energy Company DTE reported adjusted first-quarter 2015 earnings of $1.65 per share, surpassing the Zacks Consensus Estimate of $1.49 by 10.7%

Public Service Enterprise Group Inc. PEG reported adjusted operating earnings per share of $1.04 in the first quarter of 2015, surpassing the Zacks Consensus Estimate by 6.1%.

Edison International EIX reported solid first-quarter 2015 results with adjusted earnings of 89 cents per share coming in ahead of the Zacks Consensus Estimate of 78 cents by an impressive 14.1%. The quarterly number was a penny lower than the year-ago figure.

Zacks Rank

OGE Energy currently has a Zacks Rank #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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