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OGE Energy (OGE) Q2 Earnings Top Estimates, Revenues Rise Y/Y

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Shares of OGE Energy Corp. (OGE - Free Report) increased 2.2% to $35.22 on Aug 10, reflecting investor optimism following the company's second-quarter results.

OGE Energy reported second-quarter 2021 earnings of 56 cents per share, which surpassed the Zacks Consensus Estimate of 54 cents by 3.7%. The bottom-line figure also improved 30% from the year-ago quarter.

Revenues

OGE Energy’s operating revenues of $577.4 million increased 14.7% from $503.5 million in the prior-year quarter. The year-over-year upside was primarily due to higher revenues from contracts with customers.

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

 

Operational Highlights

Total sales in the reported quarter amounted to 6.9 million megawatt-hours (MWh), slightly up from 6.8 million in the prior-year quarter’s figure. Meanwhile, the company’s customer count increased 1.3% to 874,713.

Total operating expenses rose 3% year over year to $247.9 million on account of higher operation and maintenance as well as depreciation and amortization expenses.

Operating income improved 3.3% to $129.5 million from the year-ago quarter’s $125.4 million.

Interest expenses totaled $39.9 million in the second quarter, down from $40.8 million a year ago.

Highlights

OGE Energy reported net income of $113 million in the second quarter compared with the prior-year quarter’s $86 million.

The OG&E segment’s net income improved 7.6% to $85 million in the second quarter from $79 million reported in the second quarter of 2020. The upside was driven by the recovery of increased investments and improved load from customer growth.

The Natural Gas Midstream Operations segment posted net income of $32 million compared with $19 million in the prior year. The increase was primarily driven by higher commodity prices, higher gathering and processing volumes, as well as a benefit from the reduction in the Oklahoma corporate tax rate.

Zacks Rank

OGE Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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