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OGE Energy (OGE) Q2 Earnings Beat Estimates, Keeps '17 View

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OGE Energy Corp. (OGE - Free Report) posted second-quarter 2017 earnings of 52 cents per share, which surpassed the Zacks Consensus Estimate of 47 cents by 10.6%. The reported figure also improved 48.6% year over year.
 
Revenues

OGE Energy’s operating revenues of $586.4 million in the quarter rose 6.4% from the prior-year figure of $551.4 million.

Operational Highlights

Total sales in the reported quarter amounted to 7.1 million megawatt-hours (MWh), up from 6.9 million MWh in the prior-year quarter. This improvement was driven by higher system as well as integrated market sales. The company’s customer count increased by 8,384 or 1%.

Cost of sales in the quarter under review was $232.1 million, up 17.4%.

Total operating expenses decreased 7.5% year over year to $210.8 million mainly due to lower depreciation and amortization expenses as well as other operation and maintenance expenses. Consequently, operating income increased 14% to $143.5 million from the year-ago figure of $125.9 million.

Interest expenses totaled $37.1 million in the quarter, up from $36 million a year ago.

Other Highlights of the Release

OGE Energy reported net income of $104.8 million in this quarter, up 46.6% from the prior-year figure of $71.5 million.

OG&E:  The segment’s net income increased 19.4% year over year to $86 million in the quarter. The upside was mainly owing to lower depreciation expenses related to the reduction in depreciation rates as directed in the Oklahoma Corporation Commission's final order.

Natural Gas Midstream Operations: The segment posted net income of $18 million in the second quarter compared with breakeven results a year ago. The improvement was primarily on the back of higher volumes across all business segments driven by contract execution and significant rig activity.

OGE Energy Corporation Price, Consensus and EPS Surprise

OGE Energy Corporation Price, Consensus and EPS Surprise | OGE Energy Corporation Quote

Guidance

OGE Energy reiterated its guidance for 2017. The company still expects consolidated earnings to be in the lower end of $1.93–$2.09 per share.

Also, OG&E, the regulated utility, expects to earn in the lower end of $1.58–$1.70 per share.

Peer Releases

DTE Energy Company (DTE - Free Report) reported second-quarter 2017 operating earnings of $1.07 per share, which surpassed the Zacks Consensus Estimate of 97 cents by 10.3%. Operating earnings also grew 9.2% from the year-ago figure of 98 cents.

NextEra Energy, Inc. (NEE - Free Report) posted second-quarter 2017 adjusted earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.76 by 5.7%. The reported figure was also up by 11.4% year over year.

WEC Energy Group (WEC - Free Report) reported second-quarter 2017 adjusted earnings of 63 cents per share, surpassing the Zacks Consensus Estimate of 59 cents by 6.8%, and the year-ago figure of 57 cents by 10.5%.

Zacks Rank

OGE Energy currently has 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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