OGE Energy Corp.’s ( OGE Quick Quote 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.
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%.
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.
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.
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.
OGE Energy currently carries a Zacks Rank #3 (Hold). You can see
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