OGE Energy Corp. reports earnings for 2015 and outlook for 2016
In 2015,
"The significant drop in commodity prices had an impact on our business as well as our communities," said
Fourth Quarter results
For the three months ended
Discussion of 2015 results
Natural Gas Midstream Operations contributed earnings to OGE of approximately
2016 Outlook
Conference Call Webcast
Non-GAAP Financial Measures
Reconciliation of Gross Margin to Revenue attributable to OG&E |
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OGE Energy & OG&E |
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(Dollars in Millions) |
2015 |
2014 |
||||||||||||
Operating revenues |
$ |
2,196.9 |
$ |
2,453.1 |
||||||||||
Cost of sales |
865.0 |
1,106.6 |
||||||||||||
Gross Margin |
$ |
1,331.9 |
$ |
1,346.5 |
||||||||||
Ongoing Earnings and Ongoing Earnings per Average Diluted Share, which exclude non-cash charges of approximately
OGE Energy Corp |
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Reconciliation of Ongoing Earnings (Loss) to GAAP Earnings (Loss) |
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(In millions) |
2015 |
Goodwill and |
2015 |
2014 GAAP |
OG&E |
$268.9 |
$0.0 |
$268.9 |
$292.0 |
Natural Gas Midstream Operations |
9.4 |
70.8 |
80.2 |
102.3 |
Holding Company |
(7.0) |
0.0 |
(7.0) |
1.5 |
Consolidated |
$271.3 |
$70.8 |
$342.1 |
$395.8 |
Reconciliation of Ongoing Earnings per Average Diluted Share to GAAP Earnings per Average Diluted Share |
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2015 |
Goodwill and |
2015 |
2014 GAAP |
|
OG&E |
$1.35 |
$0.00 |
$1.35 |
$1.46 |
Natural Gas Midstream Operations |
0.05 |
0.35 |
0.40 |
0.51 |
Holding Company |
(0.04) |
0.00 |
(0.04) |
0.01 |
Consolidated |
$1.36 |
$0.35 |
$1.71 |
$1.98 |
(1) OGE recognized a non-cash charge of approximately $108 million or $0.33 per average diluted share for its portion of Enable Midstream's goodwill impairment. Additionally, OGE recognized a non-cash charge of approximately $6 million or $0.02 per average diluted share for a pension settlement charge related to Enable. |
(2) There were no similar charges for the year ended December 31, 2014 therefore, ongoing and GAAP earnings are the same. |
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; prices and availability of electricity, coal, natural gas and natural gas liquids; the timing and extent of changes in commodity prices, particularly natural gas and natural gas liquids, the competitive effects of the available pipeline capacity in the regions
Note: Consolidated Statements of Income, Financial and Statistical Data attached.
OGE Energy Corp. |
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Consolidated Statements of Income |
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(Unaudited) |
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Three Months Ended December 31, |
Year Ended December 31, |
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(In millions, except per share data) |
2015 |
2014 |
2015 |
2014 |
|
OPERATING REVENUES |
|||||
Electric Utility |
$ 447.1 |
$ 526.2 |
$ 2,196.9 |
$ 2,453.1 |
|
Total operating revenues |
447.1 |
526.2 |
2,196.9 |
2,453.1 |
|
COST OF SALES |
|||||
Electric Utility |
182.7 |
237.0 |
865.0 |
1,106.6 |
|
Total cost of sales |
182.7 |
237.0 |
865.0 |
1,106.6 |
|
OPERATING EXPENSES |
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Other operation and maintenance |
117.3 |
107.7 |
451.6 |
439.6 |
|
Depreciation and amortization |
77.9 |
74.2 |
307.9 |
281.4 |
|
Taxes other than income |
22.4 |
22.2 |
91.2 |
88.7 |
|
Total operating expenses |
217.6 |
204.1 |
850.7 |
809.7 |
|
OPERATING INCOME |
46.8 |
85.1 |
481.2 |
536.8 |
|
OTHER INCOME (EXPENSE) |
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Equity in earnings of unconsolidated affiliates (Note 1) |
27.5 |
40.7 |
15.5 |
172.6 |
|
Allowance for equity funds used during construction |
2.9 |
1.2 |
8.3 |
4.2 |
|
Other income |
7.6 |
6.1 |
27.0 |
17.8 |
|
Other expense |
(5.8) |
(3.2) |
(14.3) |
(14.4) |
|
Net other income |
32.2 |
44.8 |
36.5 |
180.2 |
|
INTEREST EXPENSE |
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Interest on long-term debt |
36.9 |
35.4 |
147.8 |
144.6 |
|
Allowance for borrowed funds used during construction |
(1.5) |
(0.7) |
(4.2) |
(2.4) |
|
Interest on short-term debt and other interest charges |
1.2 |
1.2 |
5.4 |
6.2 |
|
Interest expense |
36.6 |
35.9 |
149.0 |
148.4 |
|
INCOME BEFORE TAXES |
42.4 |
94.0 |
368.7 |
568.6 |
|
INCOME TAX EXPENSE |
13.0 |
35.6 |
97.4 |
172.8 |
|
NET INCOME |
29.4 |
58.4 |
271.3 |
395.8 |
|
Less: Net income attributable to noncontrolling interests |
— |
— |
— |
— |
|
NET INCOME ATTRIBUTABLE TO OGE ENERGY |
$ 29.4 |
$ 58.4 |
$ 271.3 |
$ 395.8 |
|
BASIC AVERAGE COMMON SHARES OUTSTANDING |
199.7 |
199.4 |
199.6 |
199.2 |
|
DILUTED AVERAGE COMMON SHARES OUTSTANDING |
199.7 |
199.5 |
199.6 |
199.9 |
|
BASIC EARNINGS PER AVERAGE COMMON SHARE ATTRIBUTABLE TO OGE ENERGY COMMON SHAREHOLDERS |
$ 0.15 |
$ 0.29 |
$ 1.36 |
$ 1.99 |
|
DILUTED EARNINGS PER AVERAGE COMMON SHARE ATTRIBUTABLE TO OGE ENERGY COMMON SHAREHOLDERS |
$ 0.15 |
$ 0.29 |
$ 1.36 |
$ 1.98 |
|
DIVIDENDS DECLARED PER COMMON SHARE |
$ 0.27500 |
$ 0.25000 |
$ 1.05000 |
$ 0.95000 |
Oklahoma Gas and Electric Company |
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Financial and Statistical Data |
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(Unaudited) |
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Three Months Ended December 31, |
Year Ended December 31, |
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(Dollars in millions) |
2015 |
2014 |
2015 |
2014 |
|
Operating revenues by classification |
|||||
Residential |
$ 169.8 |
$ 186.9 |
$ 896.5 |
$ 925.5 |
|
Commercial |
112.0 |
129.1 |
535.0 |
583.3 |
|
Industrial |
40.4 |
50.0 |
190.6 |
224.5 |
|
Oilfield |
34.6 |
41.9 |
162.8 |
188.3 |
|
Public authorities and street light |
40.1 |
48.0 |
194.2 |
220.3 |
|
Sales for resale |
— |
11.6 |
21.7 |
52.9 |
|
System sales revenues |
396.9 |
467.5 |
2,000.8 |
2,194.8 |
|
Off-system sales revenues |
13.8 |
16.1 |
48.6 |
94.1 |
|
Other |
36.4 |
42.6 |
147.5 |
164.2 |
|
Total operating revenues |
$ 447.1 |
$ 526.2 |
$2,196.9 |
$2,453.1 |
|
MWH sales by classification (In millions) |
|||||
Residential |
1.8 |
2.1 |
9.2 |
9.4 |
|
Commercial |
1.7 |
1.7 |
7.4 |
7.2 |
|
Industrial |
0.8 |
0.9 |
3.6 |
3.8 |
|
Oilfield |
0.9 |
0.8 |
3.4 |
3.4 |
|
Public authorities and street light |
0.7 |
0.7 |
3.1 |
3.2 |
|
Sales for resale |
— |
0.2 |
0.5 |
1.0 |
|
System sales |
5.9 |
6.4 |
27.2 |
28.0 |
|
Off-system sales |
0.6 |
0.3 |
1.7 |
2.2 |
|
Total sales |
6.5 |
6.7 |
28.9 |
30.2 |
|
Number of customers |
824,776 |
814,982 |
824,776 |
814,982 |
|
Weighted-average cost of energy per kilowatt-hour - cents |
|||||
Natural gas |
2.118 |
3.724 |
2.529 |
4.506 |
|
Coal |
2.271 |
2.169 |
2.187 |
2.152 |
|
Total fuel |
2.014 |
2.499 |
2.196 |
2.752 |
|
Total fuel and purchased power |
2.7 |
3.312 |
2.874 |
3.493 |
|
Degree days (A) |
|||||
Heating - Actual |
1,054 |
1,289 |
3,038 |
3,569 |
|
Heating - Normal |
1,329 |
1,329 |
3,349 |
3,349 |
|
Cooling - Actual |
78 |
129 |
2,071 |
2,114 |
|
Cooling - Normal |
74 |
74 |
2,092 |
2,092 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/oge-energy-corp-reports-earnings-for-2015-and-outlook-for-2016-300226793.html
SOURCE
Media, Kathleen O'Shea, (405) 553-3395, OR Financial, Todd Tidwell, (405) 553-3966