OGE Energy Corp., parent company of the utility providing electricity to large parts of the Fort Smith metro, reported first quarter net income of $47.1 million, below the $55 million in the same quarter of 2018, but in line with what analysts expected.
The earnings report was posted Thursday (May 2) before the markets opened.
Revenue in the quarter was $490 million, below the $492.7 million in the same quarter of 2018 and below the consensus estimate among analysts of $494.43 million. Per share net income for OGE Energy, the parent company of Oklahoma Gas and Electric Company, was 24 cents, on target with the consensus estimate.
OG&E generated 10 cents of the per share income, down from 16 cents per share in the same period of 2018. The company cited higher expenses related to “timing of certain projects” and “lower allowances for funds used during construction as key environmental investments were placed into service,” as some of the reasons for the lower income of the OG&E division.
Residential was the top revenue source for OG&E, with sales of $195.4 million in the quarter, down from $202.1 million in the same quarter of 2018. Commercial sales generated $119.9 million in the quarter, down from $122.7 million in the 2018 quarter, and industrial revenue was $44.5 million in the quarter, up from $43.1 million.
OG&E had 852,141 total customers at the end of the quarter, up from 843,322 at the same time in 2018. The company has more than 66,000 customers in western Arkansas.
Subsidiary company Natural Gas Midstream Operations produced 11 cents per share, or $22 million, down from $24 million in the same quarter of 2018. Higher pension settlement charges helped lower net income in the quarter, the company noted in the report. The holding company posted per share earnings of 3 cents.
“Both the utility and midstream businesses had solid first quarters and are on plan for the year,” OGE Energy Corp. Chairman, President and CEO Sean Trauschke said in the earnings report. “With our large environmental investments complete, we look forward to continuing to enhance the customer experience through investments in technology and the electric grid.”
OGE Energy, which employs around 2,300 people and provides energy services in a 30,000-square-mile area in Oklahoma and Arkansas, has a generation capacity mix of 55% natural gas, 38% coal and 7% renewable.
The company held to its 2019 net income earnings guidance that ranges between $412 million and $442 million, or a per share range of $2.05 to $2.20.
OG&E (NYSE: OGE) shares closed Thursday at $41.18, down 50 cents. During the past 52 weeks the share price has ranged between $32.71 and $43.76.