OGE earnings up 6.4% in 2012

by The City Wire staff ([email protected]) 59 views 

Oklahoma City-based OGE Energy Corp., parent company of Oklahoma Gas and Electric Company (OG&E) and OGE Enogex Holdings (Enogex), posted 2012 net income of $280 million, up over the $263 million in the 2011 period.

Total revenue for the regulated utility was $1.3 billion, slightly ahead of the $1.2 billion in 2011.

However, per share revenue during 2012 of $3.58 missed the consensus estimate of $3.71.

The company said its 2012 income increase was was primarily the result of gains from  utility investments, transmission revenue from new projects, new customer growth and production tax credits related to wind farms.

For the fourth quarter of 2012, the company posted net income of $43.5 million, just ahead of the $43.2 million in the 2011 period. The per share earnings of 39 cents per share were below the consensus estimate of 47 cents per share.

Total revenue for the quarter reached $862.1 million, below the $885.2 million during the 2011 period. Of the revenue, $465.5 million came from electric utility business, with $396.6 coming form the natural gas business.

"Execution of key multi-year initiatives was our focus for 2012," Pete Delaney, OGE Energy chairman, president and CEO, said in a statement issued Wednesday (Feb. 27). "At the utility, we completed our smart meter deployment on time and under budget, and made appreciable progress in our transmission build out, which contributed to our strong utility earnings.  At Enogex, we continue to develop our existing acreage dedications, which should provide gathering and processing volume growth for years to come."

Shares of OGE (NYSE: OGE) closed Thursday at $57.91, down 32 cents. During the past 52 weeks the share price has ranged from a $61.39 high to a $50.23 low.