OGE Energy Corp.’s (OGE - Free Report) first-quarter 2020 adjusted earnings of 23 cents per share surpassed the Zacks Consensus Estimate of 18 cents by 27.8%.
Including one-time items, the company reported GAAP loss of $2.46 per share against earnings of 24 cents in the year-ago quarter.
The downside can be attributed to a $780 million impairment charge related to Enable Midstream.
OGE Energy’s operating revenues of $431.3 million dropped 12% from the prior-year quarter’s $490 million. The decline in revenues primarily resulted from lower contract revenues.
Total sales in the reported quarter amounted to 6.8 million megawatt-hours (MWh) compared with 7 million MWh in the prior-year quarter. Meanwhile, the company’s customer count inched up approximately 0.8% to 859,628.
Cost of sales was $135 million in the first quarter compared with $212.6 million in the prior-year quarter.
Total operating expenses rose 5.4% year over year to $240 million on account of higher operation and maintenance expenses as well as depreciation and amortization expenses.
The company’s operating income grew 13.3% from the year-ago quarter’s $49.7 million to $56.3 million.
Interest expenses totaled $38.3 million in the first quarter, compared with $34.6 million in the year-ago quarter.
Other Highlights of the Release
OGE Energy reported a net loss of $491.8 million in first-quarter 2020, significantly down from the prior year’s $47.1 million.
OG&E: Segment net income remained flat year over year at $20 million in the reported quarter, as the recovery of additional assets placed into service was partially offset by unfavorable weather.
Natural Gas Midstream Operations: The segment posted a net loss of $568 million in first- quarter 2020 against earnings of $22 million in the previous year quarter.
OGE Energy still expects its 2020 earnings in the range of $2.19-$2.31 per share. The Zacks Consensus Estimate for 2020 earnings is pegged at $2.11, lower than the company provided guidance.
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
Public Service Enterprise Group Inc. (PEG - Free Report) reported first-quarter 2020 adjusted operating earnings of $1.03 per share, which came in line with the Zacks Consensus Estimate.
FirstEnergy Corporation (FE - Free Report) delivered first-quarter 2020 operating earnings of 66 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 3.13%.
NextEra Energy (NEE - Free Report) reported first-quarter 2020 adjusted earnings of $2.38 per share, which surpassed the Zacks Consensus Estimate of $2.21 by 7.7%.
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