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OGE Energy (OGE) Q1 Earnings Increase Y/Y, Revenues Decline

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Shares of OGE Energy Corp. (OGE - Free Report) dropped 1.5% to reach $38.74 on May 10, reflecting investor skepticism following the company's first-quarter 2022 results.

OGE Energy reported first-quarter 2022 earnings of $1.39 per share, up 434.6% from earnings of 26 cents in the year-ago quarter.

Revenues

OGE Energy’s operating revenues of $589.3 million plunged 63.9% from $1,630.6 million in the prior-year quarter. The year-over-year downside was primarily due to lower 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 7.1 million megawatt-hours (MWh), which improved from 6.9 MWh in the prior-year quarter. Meanwhile, the company’s customer count inched up 1.3% to 882,499.

Cost of fuel, purchased power and direct transmission was $255.7 million compared with $1,346.8 million in the prior-year quarter.

Total operating expenses increased 6.5% year over year to $250.5 million, driven by higher other operation and maintenance cost, depreciation and amortization expenses as well as taxes other than income.

Operating income improved 71% to $83.1 million from the year-ago quarter’s $48.6 million.

Interest expenses totaled $40.1 million in the first quarter, up from $39.4 million a year ago.

Highlights

OGE Energy reported a net income of $280 million in first-quarter 2022, up from the prior-year quarter’s earnings of $53 million.

The OG&E segment’s net income improved 254.5% to $39 million in the first quarter from $11 million reported in first-quarter 2021. The improvement can be attributed to higher operating revenues driven by the loss in 2021 from the Guaranteed Flat Bill program during Winter Storm Uri and higher revenues in 2022 from the recovery of capital investments.

The Natural Gas Midstream Operations segment posted a net income of $230 million compared with $38 million in the prior year. The increase was primarily driven by a $282.3 million pre-tax unrealized mark-to-market gain on OGE Energy's investment in Energy Transfer's equity securities,

Zacks Rank

OGE Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

FirstEnergy Corporation (FE - Free Report) delivered first-quarter 2022 operating EPS of 60 cents, which missed the Zacks Consensus Estimate of 62 cents by 3.2%. The bottom line declined by 13% from the year-ago earnings of 69 cents per share.

FirstEnergy generated operating revenues of $2,991 million in the first quarter, which surpassed the Zacks Consensus Estimate of $2,782 million by 7.5%. FE’s top line improved 8.7% from $2,752 million in the year-ago quarter.

NextEra Energy (NEE - Free Report) reported first-quarter 2022 adjusted earnings of 74 cents per share, which beat the Zacks Consensus Estimate of 69 cents by 7.3%. The bottom line was also up 10.5% from the prior-year quarter.

NextEra Energy’s operating revenues were $2,890 million, which lagged the Zacks Consensus Estimate of $5,178 million by 44.2%. NEE’s top line also decreased by 22.4% year over year.

Entergy Corporation (ETR - Free Report) reported first-quarter 2022 adjusted earnings of $1.32 per share, which missed the Zacks Consensus Estimate of $1.38 by 4.3%. The reported figure also declined 10.2% from $1.47 per share in the year-ago quarter.

Entergy’s first-quarter revenues of $2.88 billion exceeded the Zacks Consensus Estimate of $2.75 billion by 4.8%. As of Mar 31, 2022, ETR had cash and cash equivalents of $701.6 million compared with $442.6 million as of Dec 31, 2021.