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OGE Energy (OGE) Q4 Earnings and Revenues Increase Y/Y

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Shares of OGE Energy Corp. (OGE - Free Report) have risen 3.5% to $37.55 since the company released its fourth-quarter 2021 results on Feb 24.

OGE Energy reported fourth-quarter 2021 earnings of $1.59 per share, which surged a solid 488.9% from the year-ago quarter, primarily due to net gains from the Enable merger transaction.

OGE Energy reported earnings per share (EPS) of $3.68 for full-year 2021 against the net loss of 87 cents incurred in 2020.

Revenues

Operating revenues for the fourth quarter totaled $581.3 million and rose 19.8% from the year-ago quarter’s $485.4 million.

In 2021, OGE generated sales worth $3.66 billion, up 72.2% from the year-ago figure.

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

Highlights

Total sales in the reported quarter amounted to 6.6 million megawatt-hours (MWh), slightly down from 6.7 million MWh in the prior-year quarter. Meanwhile, the company’s customer count increased 1.4% to 879,447.

Total operating expenses rose 3.9% year over year to $249.3 million.

Operating income slipped 1.5% to $81.3 million from the year-ago quarter’s $82.5 million.

OGE Energy reported net income of $319.2 million in the fourth quarter compared with the prior-year quarter’s $54.8 million.

The OG&E segment’s net income declined 2.5% to $40 million in the fourth quarter from $41 million reported in the fourth quarter of 2020. The decrease in earnings at OG&E was primarily due to warmer weather conditions in the fourth quarter of 2021 and the recognition of a loss associated with the Winter Storm Uri regulatory settlement.

Financial Update

Long-term debt was $4.49 billion as of Dec 31, 2021, higher than the 2020-end level of $3.49 billion.

Net cash outflow from operating activities in 2021 was $358.7 million against cash inflow of $640.4 million in the prior year.

Total capital expenditures totaled $778.5 million in 2021, up from $650.5 million a year ago.

2022 Guidance

The company initiated its 2022 guidance for the OG&E business segment. Its earnings are projected in the range of $1.87-$1.97 per share.

The company's guidance for other operations, excluding natural gas midstream operations, is a loss in the range of $0.01-$0.02 per share in 2022.

The company did not issue the 2022 consolidated earnings guidance.

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.

Recent Utility Releases

Hawaiian Electric Industries, Inc. (HE - Free Report) reported EPS of 50 cents for the fourth quarter of 2021, which surpassed the Zacks Consensus Estimate of 45 cents by 11.1%. The bottom line also improved 8.7% from 46 cents per share in the prior-year quarter.

The Zacks Consensus Estimate for Hawaiian Electric’s 2022 earnings is pegged at $2.12 per share, which implies a year-over-year decline of 5.8%. HE boasts a long-term earnings growth rate of 3.2%.

Public Service Enterprise Group Incorporated (PEG - Free Report) or PSEG reported fourth-quarter 2021 adjusted operating earnings of 69 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 1.5%. The bottom line also improved 6.2% on a year-over-year basis.

The Zacks Consensus Estimate for PSEG’s 2022 earnings is pegged at $3.48 per share, which implies a year-over-year decline of 6.9%. PEG boasts a long-term earnings growth rate of 3.6%.

DTE Energy Company (DTE - Free Report) reported fourth-quarter 2021 operating EPS of $1.05, which surpassed the Zacks Consensus Estimate of 94 cents by 11.7%. The bottom line also increased 1.9% from the year-ago quarter’s $1.03 per share.

The Zacks Consensus Estimate for DTE Energy’s 2022 earnings is pegged at $5.94 per share, which implies a year-over-year slip of 0.8%. DTE boasts a long-term earnings growth rate of 6%.