OGE Energy Corp. reports 2024 results and outlook for 2025
Rhea-AI Summary
OGE Energy Corp. (NYSE: OGE) reported earnings of $2.19 per diluted share in 2024, up from $2.07 in 2023. Its regulated electric subsidiary, OG&E, contributed $2.33 per share, an increase from $2.12 in 2023. The company's net income rose to $441.5 million in 2024 from $416.8 million in 2023.
The improved performance was primarily driven by exceptional load growth and higher operating revenues from capital investment recovery, though partially offset by increased depreciation and interest expenses. For Q4 2024, OGE reported net income of $101.9 million ($0.50 per share), up from $48.2 million ($0.24 per share) in Q4 2023.
Looking ahead to 2025, OGE provided earnings guidance of $2.21 to $2.33 per share, with a midpoint of $2.27. The company expects 5-7% annual consolidated earnings growth from 2025's midpoint. The Board approved a Q2 2025 dividend of $0.42125 per share, payable April 25, 2025.
Positive
- Net income increased to $441.5M in 2024 from $416.8M in 2023
- EPS grew to $2.19 in 2024 from $2.07 in 2023
- Q4 2024 net income more than doubled to $101.9M from $48.2M in Q4 2023
- Customer base expanded to 906,952 from 896,102
- Projected 5-7% annual earnings growth from 2025
Negative
- Higher interest expenses and depreciation costs in 2024
- Holding company operations loss increased to $0.14 per share from $0.05 in 2023
- Higher fuel and purchased power expenses: $1,076.4M in 2024 vs $911.7M in 2023
News Market Reaction
On the day this news was published, OGE gained 0.36%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
- OG&E, a regulated electric company, contributed earnings of
$2.33 $2.12 - Other operations, which includes the holding company, contributed a loss of
$0.14 $0.05
"Excellent operational execution and our dedicated team delivered strong results for 2024," said Sean Trauschke, Chairman, President and CEO of OGE Energy Corp. "Customers experienced outstanding reliability from the grid strengthening and power plant investments we have made over the last several years."
"Outstanding customer growth and demand for electricity support our continued efforts to drive economic and community growth across our service area. As we complete two new natural-gas power generation units at our Horseshoe Lake plant, we will continue to meet the growing energy needs in our region, create jobs and tax dollars to strengthen communities and serve new businesses."
Discussion of 2024 Results
OG&E contributed net income of
Other Operations resulted in a loss of
OGE Energy's net income was
Fourth Quarter Results
For the three months ended December 31, 2024, OGE Energy reported net income of
OG&E reported net income of
Other operations reported a loss of
2025 Outlook and Consolidated Earnings per Share Growth Rate
The midpoint of OGE Energy's consolidated earnings guidance for 2025 is
The guidance assumes, among other things, approximately 202.1 million average diluted shares outstanding and normal weather for the remainder of the year. OG&E has significant seasonality in its earnings due to weather on a year over year basis.
More information regarding the Company's financial results and 2025 earnings guidance is contained in the Company's Form 10-K filed with the Securities and Exchange Commission.
Dividend Declared
On February 18, 2025, the Company's Board of Directors approved a second quarter dividend of
Conference Call Webcast
OGE Energy Corp. will host an earnings and business update on Wednesday, February 19, 2025, at 8 a.m. CST. The conference will be available through the Investor Center at www.oge.com.
OGE Energy Corp. is the parent company of OG&E, a regulated electric company with approximately 907,000 customers in
Some the matters discussed in this news release may contain forward looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements are intended to be identified in this document by the words "anticipate," "believe," "estimate," "expect," "forecast," "intend," "objective," "plan," "possible," "potential," "project," "target" and similar expressions. Actual results may vary materially from those expressed in forward looking statements. Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to: general economic conditions, including the availability of credit, access to existing lines of credit, access to the commercial paper markets, actions of rating agencies and inflation rates, and their impact on capital expenditures; the ability of the Company to access the capital markets and obtain financing on favorable terms, as well as inflation rates and monetary fluctuations; the ability to obtain timely and sufficient rate relief to allow for recovery of items such as capital expenditures, fuel and purchased power costs, operating costs, transmission costs and deferred expenditures; prices and availability of electricity, coal and natural gas; competitive factors, including the extent and timing of the entry of additional competition in the markets served by the Company, potentially through deregulation; the impact on demand for the Company's services resulting from cost-competitive advances in technology, such as distributed electricity generation and customer energy efficiency programs; technological developments, changing markets and other factors that result in competitive disadvantages and create the potential for impairment of existing assets; factors affecting utility operations such as unusual weather conditions; catastrophic weather-related damage; unscheduled generation outages; unusual maintenance or repairs; unanticipated changes to fossil fuel, natural gas or coal supply costs or availability due to higher demand, shortages, transportation problems or other developments; environmental incidents; or electric transmission or gas pipeline system constraints; availability and prices of raw materials and equipment for current and future construction projects; the effect of retroactive pricing of transactions in the SPP markets or adjustments in market pricing mechanisms by the SPP; federal or state legislation and regulatory decisions and initiatives that affect cost and investment recovery, have an impact on rate structures or affect the speed and degree to which competition enters the Company's markets; environmental laws, safety laws or other regulations that may impact the cost of operations, restrict or change the way the Company's facilities are operated or result in stranded assets; the ability of the Company to meet future capacity requirements mandated by the SPP, which could be impacted by future load growth, environmental regulations recently finalized by the EPA, and the availability of resources; changes in accounting standards, rules or guidelines; the discontinuance of accounting principles for certain types of rate-regulated activities; the cost of protecting assets against, or damage due to, terrorism or cyberattacks, including the Company losing control of its assets and potential ransoms, and other catastrophic events; the availability, cost, coverage and terms of insurance; changes in the use, perception or regulation of generative artificial intelligence technologies, which could limit the Company's ability to utilize such technology, create risk of enhanced regulatory scrutiny, generate uncertainty around intellectual property ownership, licensing or use, or which could otherwise result in risk of damage to the Company's business, reputation or financial results; creditworthiness of suppliers, customers and other contractual parties, including large, new customers from emerging industries such as cryptocurrency; social attitudes regarding the electric utility and power industries; identification of suitable investment opportunities to enhance shareholder returns and achieve long-term financial objectives through business acquisitions and divestitures; increased pension and healthcare costs; national and global events that could adversely affect and/or exacerbate macroeconomic conditions, including inflationary pressures, interest rate fluctuations, supply chain disruptions, economic recessions, pandemic health events and uncertainty surrounding continued hostilities or sustained military campaigns, and their collateral consequences; costs and other effects of legal and administrative proceedings, settlements, investigations, claims and matters, including, but not limited to, other risk factors listed in the reports filed by the Company with the Securities and Exchange Commission, including those listed within the Company's most recent Form 10-K for the year ended December 31, 2024.
OGE ENERGY CORP. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||||
Year Ended December 31 (In millions except per share data) | 2024 | 2023 | 2022 | |||
OPERATING REVENUES | ||||||
Revenues from contracts with customers | $ 2,916.6 | $ 2,607.3 | $ 3,304.2 | |||
Other revenues | 68.7 | 67.0 | 71.5 | |||
Operating revenues | 2,985.3 | 2,674.3 | 3,375.7 | |||
FUEL, PURCHASED POWER AND DIRECT TRANSMISSION EXPENSE | 1,076.4 | 911.7 | 1,662.4 | |||
OPERATING EXPENSES | ||||||
Other operation and maintenance | 514.4 | 502.6 | 501.4 | |||
Depreciation and amortization | 539.5 | 506.6 | 460.9 | |||
Taxes other than income | 109.7 | 103.2 | 101.5 | |||
Operating expenses | 1,163.6 | 1,112.4 | 1,063.8 | |||
OPERATING INCOME | 745.3 | 650.2 | 649.5 | |||
OTHER INCOME (EXPENSE) | ||||||
Allowance for equity funds used during construction | 25.5 | 19.4 | 6.9 | |||
Other net periodic benefit income (expense) | (2.2) | 5.6 | (12.9) | |||
Gain on equity securities | — | — | 282.1 | |||
Other income | 30.6 | 48.2 | 74.6 | |||
Other expense | (24.1) | (29.0) | (44.6) | |||
Net other income | 29.8 | 44.2 | 306.1 | |||
INTEREST EXPENSE | ||||||
Interest on long-term debt | 228.3 | 205.0 | 162.1 | |||
Allowance for borrowed funds used during construction | (14.6) | (7.1) | (4.0) | |||
Interest on short-term debt and other interest charges | 40.8 | 23.5 | 8.2 | |||
Interest expense | 254.5 | 221.4 | 166.3 | |||
INCOME BEFORE TAXES | 520.6 | 473.0 | 789.3 | |||
INCOME TAX EXPENSE | 79.1 | 56.2 | 123.6 | |||
NET INCOME | $ 441.5 | $ 416.8 | $ 665.7 | |||
BASIC AVERAGE COMMON SHARES OUTSTANDING | 200.8 | 200.3 | 200.2 | |||
DILUTED AVERAGE COMMON SHARES OUTSTANDING | 201.3 | 200.9 | 200.8 | |||
BASIC EARNINGS PER AVERAGE COMMON SHARE | $ 2.20 | $ 2.08 | $ 3.33 | |||
DILUTED EARNINGS PER AVERAGE COMMON SHARE | $ 2.19 | $ 2.07 | $ 3.32 | |||
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) | ||||||
Year Ended December 31 (In millions) | 2024 | 2023 | 2022 | |||
OPERATING REVENUES | ||||||
Revenues from contracts with customers | $ 2,916.6 | $ 2,607.3 | $ 3,304.2 | |||
Other revenues | 68.7 | 67.0 | 71.5 | |||
Operating revenues | 2,985.3 | 2,674.3 | 3,375.7 | |||
FUEL, PURCHASED POWER AND DIRECT TRANSMISSION EXPENSE | 1,076.4 | 911.7 | 1,662.4 | |||
OPERATING EXPENSES | ||||||
Other operation and maintenance | 514.1 | 505.0 | 491.9 | |||
Depreciation and amortization | 539.5 | 506.6 | 460.9 | |||
Taxes other than income | 109.7 | 99.4 | 98.0 | |||
Operating expenses | 1,163.3 | 1,111.0 | 1,050.8 | |||
OPERATING INCOME | 745.6 | 651.6 | 662.5 | |||
OTHER INCOME (EXPENSE) | ||||||
Allowance for equity funds used during construction | 25.5 | 19.4 | 6.9 | |||
Other net periodic benefit income (expense) | (1.6) | 6.5 | 1.2 | |||
Other income | 12.5 | 23.9 | 6.5 | |||
Other expense | (4.5) | (6.3) | (3.4) | |||
Net other income | 31.9 | 43.5 | 11.2 | |||
INTEREST EXPENSE | ||||||
Interest on long-term debt | 212.0 | 200.4 | 157.4 | |||
Allowance for borrowed funds used during construction | (14.6) | (7.1) | (4.0) | |||
Interest on short-term debt and other interest charges | 17.0 | 6.6 | 4.4 | |||
Interest expense | 214.4 | 199.9 | 157.8 | |||
INCOME BEFORE TAXES | 563.1 | 495.2 | 515.9 | |||
INCOME TAX EXPENSE | 93.2 | 68.8 | 76.4 | |||
NET INCOME | 469.9 | 426.4 | 439.5 | |||
Other comprehensive income, net of tax | — | — | — | |||
COMPREHENSIVE INCOME | $ 469.9 | $ 426.4 | $ 439.5 | |||
FINANCIAL AND STATISTICAL DATA | ||||||||
Three Months Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
(Dollars in millions) | 2024 | 2023 | 2024 | 2023 | ||||
Operating revenues by classification: | ||||||||
Residential | $ 250.4 | $ 204.4 | $ 1,148.5 | $ 1,040.4 | ||||
Commercial | 213.0 | 150.2 | 839.1 | 688.4 | ||||
Industrial | 64.1 | 53.0 | 254.1 | 240.5 | ||||
Oilfield | 61.3 | 47.5 | 227.7 | 211.9 | ||||
Public authorities and street light | 63.4 | 52.5 | 262.0 | 234.9 | ||||
System sales revenues | 652.2 | 507.6 | 2,731.4 | 2,416.1 | ||||
Provision for rate refund and tax refund | 40.5 | — | (3.0) | 2.0 | ||||
Integrated market | 23.2 | 13.9 | 74.5 | 71.6 | ||||
Transmission | 38.2 | 36.1 | 152.9 | 143.0 | ||||
Other | 6.4 | 9.1 | 29.5 | 41.6 | ||||
Total operating revenues | $ 760.5 | $ 566.7 | $ 2,985.3 | $ 2,674.3 | ||||
MWh sales by classification (In millions) | ||||||||
Residential | 2.0 | 2.0 | 9.8 | 9.6 | ||||
Commercial | 2.7 | 2.0 | 10.5 | 8.5 | ||||
Industrial | 1.0 | 1.0 | 4.2 | 4.2 | ||||
Oilfield | 1.1 | 1.1 | 4.4 | 4.4 | ||||
Public authorities and street light | 0.7 | 0.7 | 3.1 | 3.0 | ||||
System sales | 7.5 | 6.8 | 32.0 | 29.7 | ||||
Integrated market | 0.2 | 0.1 | 0.8 | 0.8 | ||||
Total sales | 7.7 | 6.9 | 32.8 | 30.5 | ||||
Number of customers | 906,952 | 896,102 | 906,952 | 896,102 | ||||
Weighted-average cost of energy per kilowatt-hour (In cents) | ||||||||
Natural gas | 3.770 | 3.216 | 2.640 | 2.976 | ||||
Coal | 3.142 | 3.253 | 3.083 | 3.385 | ||||
Total fuel | 3.401 | 3.008 | 2.637 | 2.926 | ||||
Total fuel and purchased power | 3.751 | 2.667 | 3.139 | 2.837 | ||||
Degree days (A) | ||||||||
Heating - Actual | 979 | 1,166 | 2,791 | 3,092 | ||||
Heating - Normal | 1,413 | 1,413 | 3,568 | 3,568 | ||||
Cooling - Actual | 174 | 128 | 2,313 | 2,215 | ||||
Cooling - Normal | 62 | 62 | 1,893 | 1,893 | ||||
View original content:https://www.prnewswire.com/news-releases/oge-energy-corp-reports-2024-results-and-outlook-for-2025-302379646.html
SOURCE OGE Energy Corp.
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