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OGE Energy (OGE) Reports Q4 Earnings, Sees Y/Y Revenue Increase

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Shares of OGE Energy Corp. (OGE - Free Report) dropped 5% to reach $29.59 on Mar 1, reflecting investor skepticism following the company's lower-than-expected fourth-quarter results.

OGE Energy reported fourth-quarter 2020 adjusted earnings of 30 cents per share.

Including one-time items, the company reported GAAP earnings of 27 cents per share compared with earnings of 18 cents in the year-ago quarter.

For 2020, the company reported adjusted earnings of $2.08 per share. The company also reported GAAP loss of 87 cents per share against earnings of $2.16 recorded in 2019. 

OGE Energy Corporation Price, Consensus and EPS Surprise

OGE Energy Corporation Price, Consensus and EPS Surprise

OGE Energy Corporation price-consensus-eps-surprise-chart | OGE Energy Corporation Quote

 

Revenues

OGE Energy’s operating revenues of $485.4 million rose 2.7% from $472.5 million in the prior-year quarter. The year-over-year upside was primarily due to higher revenues from contracts with customers and other reduced revenues.

For 2020, the company generated revenues worth $2,122.3 million compared with $2,231.6 million recorded in 2019.

Operational Highlights

Total sales in the reported quarter amounted to 6.7 million megawatt-hours (MWh), which came in line with the prior-year quarter’s figure. Meanwhile, the company’s customer count inched up 1.1% to 867,389.

Cost of sales was $163.1 million compared with $161.6 million in the prior-year quarter.

Total operating expenses slipped 0.3% year over year to $239.8 million on account of reduced operation and maintenance expenses.

Operating income improved 17.4% to $82.5 million from the year-ago quarter’s $70.3 million.

Interest expenses totaled $39.6 million in the fourth quarter, up from $37.8 million a year ago.

Highlights

OGE Energy reported net loss of $173.7 million in 2020, down from the prior-year’s earnings of $433.6 million.

The OG&E segment’s net income declined 3.1% to $339 million in 2020 from $350 million reported in 2019. The decrease can be primarily attributed to higher depreciation and amortization expense on account of additional assets being placed into service, lower revenues from mild summer weather and COVID-19 impacts, higher income tax expense and higher interest expense driven by increased long-term debt outstanding.

The Natural Gas Midstream Operations segment posted net loss of $515 million against earnings of $81.4 million in the prior year. The decrease was primarily led by decrease in equity in earnings of Enable related to the impairment of OGE Energy's investment in Enable recorded in March 2020.

Zacks Rank

OGE Energy currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2020 operating earnings of 54 cents per share, in line with the Zacks Consensus Estimate.

NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2020 adjusted earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 2.6%.

CMS Energy Corp. (CMS - Free Report) reported fourth-quarter 2020 adjusted earnings per share of 56 cents, which surpassed the Zacks Consensus Estimate of 55 cents by 1.8%.

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