OGE Energy (OGE) Q4 Earnings Beat, Revenues Decline Y/Y
OGE Energy Corp. OGE reported fourth-quarter 2023 earnings of 24 cents per share, which beat the Zacks Consensus Estimate of 22 cents by 9.1%. However, the figure declined 4% from 25 cents per share recorded in the year-ago quarter.
For 2023, OGE reported earnings of $2.07 per share, a 37.7% decrease from $3.32 in 2022.
Revenues
OGE’s operating revenues of $566.7 million declined 20.4% from $711.9 million recorded in the prior-year quarter. The top line also missed the Zacks Consensus Estimate of $717 million by 21%.
For 2023, OGE reported operating revenues of $2.67 billion, declining 20.8% from $3.38 billion reported in 2022.
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 6.8 million megawatt-hours (MWh), down from 7.1 MWh in the prior-year quarter. The company’s customer count increased 0.8% to 896,102.
During 2023, the cost of fuel, purchased power and direct transmission declined 45.2% to $911.7 million from $1,662.4 million in 2022.
Total operating expenses for 2023 increased 4.6% to $1.11 billion, primarily driven by higher depreciation and amortization expenses and other operation and maintenance expenses.
Operating income totaled $650.2 million in 2023, up 0.1% from the year-ago level of $649.5 million.
For 2023, interest expenses totaled $221.4 million, up 33.1% from $166.3 million recorded a year ago.
Segment Details
OGE Energy reported a fourth-quarter net income of $48.2 million, down 4.2% from the prior-year quarter’s figure of $50.3 million.
The OG&E segment’s net income amounted to $48.6 million, up 4.1% from the year-ago period’s $46.7 million. The increase was primarily backed by higher operating revenues driven by the recovery of capital investments and lower other operation and maintenance expenses.
Financial Highlights
OGE had cash and cash equivalents of $0.2 million as of Dec 31, 2023, compared with $88.1 million as of Dec 31, 2022.
Long-term debt totaled $4.34 billion as of Dec 31, 2023, up from $3.55 billion as of Dec 31, 2022.
During 2023, OGE generated cash from operating activities worth $1,232.3 million compared with the year-ago figure of $952.4 million.
2024 Guidance
OGE Energy introduced its 2024 earnings per share guidance. The company expects earnings in the range of $2.06-$2.18 per share. The Zacks Consensus Estimate is pegged at $2.14, which lies higher than the mid-point of the company’s guided range.
For its OG&E segment, OGE expects earnings to be at $2.22 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
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NiSource NI reported fourth-quarter 2023 operating earnings of 53 cents per share, which surpassed the Zacks Consensus Estimate of 52 cents by 1.9%. The bottom line increased 6% from the year-ago quarter’s recorded figure of 50 cents.
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FirstEnergy FE reported fourth-quarter 2023 operating earnings of 62 cents per share, which surpassed the Zacks Consensus Estimate of 60 cents by 3.3%. The bottom line increased 24% from the year-ago quarter’s figure of 50 cents.
Operating revenues of $3.15 billion missed the Zacks Consensus Estimate of $3.29 billion by 4.2%. The top line also declined 0.9% from $3.18 billion recorded in the year-ago quarter.
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