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OGE Energy (OGE) Q2 Earnings Miss, Revenues Decline Y/Y
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OGE Energy Corp.’s (OGE - Free Report) reported second-quarter 2023 earnings of 44 cents per share, which missed the Zacks Consensus Estimate of 65 cents by 32.3%. The figure, however, improved a solid 22.2% from 36 cents per share recorded in the year-ago period.
The year-over-year upside can be attributed to the absence of loss that the company had incurred from natural gas midstream operations in second quarter of 2022, which OGE Energy fully exited in 2022 through the sale of all Energy Transfer units.
Revenues
OGE’s operating revenues of $605 million declined 24.7% from $803.7 million recorded in the prior-year quarter. The top line also missed the Zacks Consensus Estimate of $855.6 million by 29.3%.
OGE Energy Corporation Price, Consensus and EPS Surprise
Total sales in the reported quarter were 7.3 million megawatt-hours (MWh), down from 7.5 MWh in the prior-year quarter. The company’s customer count increased 0.8% to 891,755.
The cost of fuel, purchased power and direct transmission declined 53.8% to $181.8 million from $393.3 million a year ago.
Total operating expenses increased 9.1% to $276.2 million, primarily driven by higher depreciation and amortization expenses as well as other operation and maintenance (O&M) expenses.
Operating income totaled $147 million, down 6.5% from the year-ago quarter’s level of $157.2 million.
Interest expenses totaled $52.1 million, up 30.9% from $39.8 million recorded a year ago.
Financial Highlights
OGE Energy reported a net income of $88.4 million in the second quarter of 2023, up from the prior-year quarter’s figure of $73.1 million.
The OG&E segment’s net income amounted to $91.9 million, down 8.7% from the year-ago period’s $100.7 million. The deterioration was primarily due to less favorable weather, expected higher depreciation and interest expense on a growing asset base, as well as increased other O&M expense.
2023 Guidance
OGE Energy reiterated its 2023 earnings per share (EPS) in the range of $1.93-$2.07. The Zacks Consensus Estimate for the same is pegged at $2.01, which lies just above the mid-point of the company guided range.
For its OG&E segment, the company still expects earnings in the band of $1.99-$2.09 per share.
American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2023 operating EPS of $1.13, which lagged the Zacks Consensus Estimate of $1.14 by 0.9%. The bottom line also declined 5.8% from $1.20 recorded in the year-ago quarter.
American Electric’s second-quarter operating revenues of $4,372.5 million lagged the Zacks Consensus Estimate of $4,686.7 million by 6.7%. The reported figure also decreased 5.8% from the year-ago quarter’s level of $4,639.7 million.
PG&E Corporation’s (PCG - Free Report) reported second-quarter 2023 adjusted EPS of 23 cents, which lagged the Zacks Consensus Estimate of 27 cents by 14.8%. The bottom line also decreased 8% from the year-ago quarter’s reported figure.
PCG reported total revenues of $5,290 million compared with $5,118 million in the year-ago period. Operating revenues missed the Zacks Consensus Estimate of $5,608.6 million by 5.7%.
CenterPoint Energy, Inc. (CNP - Free Report) reported second-quarter 2023 adjusted earnings of 28 cents per share, which lagged the Zacks Consensus Estimate of 29 cents by 3.4%. The bottom line also declined 10.7% from the year-ago quarter’s figure of 31 cents.
CNP generated revenues of $1,875 million, down 3.5% from the year-ago quarter’s figure. The top line missed the Zacks Consensus Estimate of $1,922.8 million by 2.5%.
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OGE Energy (OGE) Q2 Earnings Miss, Revenues Decline Y/Y
OGE Energy Corp.’s (OGE - Free Report) reported second-quarter 2023 earnings of 44 cents per share, which missed the Zacks Consensus Estimate of 65 cents by 32.3%. The figure, however, improved a solid 22.2% from 36 cents per share recorded in the year-ago period.
The year-over-year upside can be attributed to the absence of loss that the company had incurred from natural gas midstream operations in second quarter of 2022, which OGE Energy fully exited in 2022 through the sale of all Energy Transfer units.
Revenues
OGE’s operating revenues of $605 million declined 24.7% from $803.7 million recorded in the prior-year quarter. The top line also missed the Zacks Consensus Estimate of $855.6 million by 29.3%.
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 were 7.3 million megawatt-hours (MWh), down from 7.5 MWh in the prior-year quarter. The company’s customer count increased 0.8% to 891,755.
The cost of fuel, purchased power and direct transmission declined 53.8% to $181.8 million from $393.3 million a year ago.
Total operating expenses increased 9.1% to $276.2 million, primarily driven by higher depreciation and amortization expenses as well as other operation and maintenance (O&M) expenses.
Operating income totaled $147 million, down 6.5% from the year-ago quarter’s level of $157.2 million.
Interest expenses totaled $52.1 million, up 30.9% from $39.8 million recorded a year ago.
Financial Highlights
OGE Energy reported a net income of $88.4 million in the second quarter of 2023, up from the prior-year quarter’s figure of $73.1 million.
The OG&E segment’s net income amounted to $91.9 million, down 8.7% from the year-ago period’s $100.7 million. The deterioration was primarily due to less favorable weather, expected higher depreciation and interest expense on a growing asset base, as well as increased other O&M expense.
2023 Guidance
OGE Energy reiterated its 2023 earnings per share (EPS) in the range of $1.93-$2.07. The Zacks Consensus Estimate for the same is pegged at $2.01, which lies just above the mid-point of the company guided range.
For its OG&E segment, the company still expects earnings in the band of $1.99-$2.09 per share.
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.
Recent Utility Releases
American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2023 operating EPS of $1.13, which lagged the Zacks Consensus Estimate of $1.14 by 0.9%. The bottom line also declined 5.8% from $1.20 recorded in the year-ago quarter.
American Electric’s second-quarter operating revenues of $4,372.5 million lagged the Zacks Consensus Estimate of $4,686.7 million by 6.7%. The reported figure also decreased 5.8% from the year-ago quarter’s level of $4,639.7 million.
PG&E Corporation’s (PCG - Free Report) reported second-quarter 2023 adjusted EPS of 23 cents, which lagged the Zacks Consensus Estimate of 27 cents by 14.8%. The bottom line also decreased 8% from the year-ago quarter’s reported figure.
PCG reported total revenues of $5,290 million compared with $5,118 million in the year-ago period. Operating revenues missed the Zacks Consensus Estimate of $5,608.6 million by 5.7%.
CenterPoint Energy, Inc. (CNP - Free Report) reported second-quarter 2023 adjusted earnings of 28 cents per share, which lagged the Zacks Consensus Estimate of 29 cents by 3.4%. The bottom line also declined 10.7% from the year-ago quarter’s figure of 31 cents.
CNP generated revenues of $1,875 million, down 3.5% from the year-ago quarter’s figure. The top line missed the Zacks Consensus Estimate of $1,922.8 million by 2.5%.