OGE
Oge Energy CORP
NYSE
8-K: OGE Energy Corp. Reports Increased 2024 Earnings and Announces 2025 Outlook
Sentiment:
Earnings Release
18 February 2025 6:03 PM
OGE Energy Corp. announced higher earnings per share for 2024 and provided its earnings outlook for 2025, projecting continued growth.
Better than expected
OGE Energy reported higher earnings per share for 2024 compared to 2023.
OG&E's net income increased significantly in 2024 compared to 2023.
The company's fourth quarter results were significantly better than the same period in the previous year.
Summary
- OGE Energy Corp. reported earnings of $2.19 per diluted share in 2024, up from $2.07 per diluted share in 2023.
- OG&E, a subsidiary, contributed $2.33 per diluted share in 2024, compared to $2.12 per diluted share in 2023.
- Other operations, including the holding company, reported a loss of $0.14 per diluted share in 2024, compared to a loss of $0.05 per diluted share in 2023.
- OGE Energy's net income for 2024 was $441.5 million, or $2.19 per diluted share, compared to $416.8 million, or $2.07 per diluted share, in 2023.
- For the fourth quarter of 2024, OGE Energy reported net income of $101.9 million, or $0.50 per diluted share, compared to $48.2 million, or $0.24 per diluted share, in the same period of 2023.
- The company forecasts 2025 consolidated earnings per share to be $2.27, within a range of $2.21 to $2.33.
- OG&E is expected to contribute $2.43 per diluted share, while the holding company is expected to have a loss of $0.16 per diluted share.
- OGE Energy expects to grow consolidated earnings per share annually between 5% and 7% from the midpoint of the 2025 guidance range.
- The Board of Directors approved a second quarter dividend of $0.42125 per common share, payable on April 25, 2025, to shareholders of record on April 7, 2025.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with increased earnings and projected growth, indicating a favorable sentiment.
Positives
- OGE Energy Corp. reported increased earnings per share for 2024.
- OG&E's net income saw a significant increase in 2024.
- The company is projecting continued earnings growth for 2025.
- A dividend of $0.42125 per common share was declared.
Negatives
- Other operations, including the holding company, reported a loss of $0.14 per diluted share in 2024, which is larger than the loss of $0.05 per diluted share in 2023.
- The increase in net loss for other operations was primarily due to higher interest expense and lower net other income.
Risks
- The company's forward-looking statements are subject to risks, uncertainties, and assumptions.
- Factors such as economic conditions, access to capital markets, regulatory decisions, and environmental laws could affect actual results.
- Unusual weather conditions, catastrophic events, and changes in technology could also impact the company's performance.
- The company's ability to meet future capacity requirements mandated by the SPP could be impacted by future load growth, environmental regulations recently finalized by the EPA, and the availability of resources.
Future Outlook
OGE Energy expects to grow consolidated earnings per share annually between 5% and 7% from the midpoint of 2025's guidance range, with a midpoint of $2.27 per average diluted share.
Management Comments
- 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.
Industry Context
The announcement reflects a trend in the utility sector where companies are focusing on grid strengthening, power plant investments, and meeting growing energy demands, while also navigating regulatory and economic factors.
Comparison to Industry Standards
- OGE Energy's performance can be compared to other regulated electric companies such as Duke Energy, Southern Company, and Exelon Corporation.
- These companies also focus on operational efficiency, capital investments, and regulatory compliance to drive earnings growth.
- The projected earnings growth of 5% to 7% is within the typical range for mature utility companies.
Stakeholder Impact
- Shareholders will benefit from increased earnings and dividend payments.
- Customers will experience outstanding reliability from grid strengthening and power plant investments.
- The company's efforts will drive economic and community growth across its service area.
Next Steps
- OGE Energy will continue to focus on operational execution and meeting growing energy needs.
- The company will complete two new natural-gas power generation units at its Horseshoe Lake plant.
- OGE Energy will host an earnings and business update conference call on February 19, 2025.
Key Dates
- February 18, 2025: Board of Directors approved a second quarter dividend of $0.42125 per common share.
- February 19, 2025: OGE Energy issued a press release announcing its consolidated financial results for 2024 and Board approval of a second quarter dividend.
- February 19, 2025: Earnings and business update conference call webcast at 8 a.m. CST.
- April 7, 2025: Shareholders of record date for the second quarter dividend.
- April 25, 2025: Payment date for the second quarter dividend.
Keywords
OGE
Oge Energy CORP
NYSE
Sector: Utilities
Filings with Classifications
Better than expected
29 April 2025 9:42 PM
Earnings Release
- The company's earnings per share significantly increased from $0.09 to $0.31 compared to the same period last year.
- OG&E's net income nearly tripled, increasing from $25.2 million to $71.0 million year-over-year.
Better than expected
29 April 2025 9:41 PM
Quarterly Report
- Net income increased significantly due to higher operating revenues and lower operation and maintenance expenses.
Better than expected
1 April 2025 4:39 PM
Proxy Statement
- The company's consolidated earnings per share, excluding midstream results, have a compound annual growth rate of 6% over the past 10 years.
- The dividend compound annual growth rate has been 5% over the past 10 years.
- Controllable costs per customer have increased less than 1% per year over the past decade.
Capital raise
18 February 2025 6:03 PM
Annual Results
- OGE Energy expects to issue between $15 million to $25 million of common stock from its Automatic Dividend Reinvestment and Stock Purchase Plan in 2025.
- In 2025, OG&E expects to issue $300 million to $350 million in long-term debt to help fund general operating needs.
Better than expected
18 February 2025 6:03 PM
Earnings Release
- OGE Energy reported higher earnings per share for 2024 compared to 2023.
- OG&E's net income increased significantly in 2024 compared to 2023.
- The company's fourth quarter results were significantly better than the same period in the previous year.
Worse than expected
4 November 2024 5:48 PM
Quarterly Report
- The company's earnings per diluted share decreased from $1.20 in Q3 2023 to $1.09 in Q3 2024.
- OG&E's net income decreased from $246.1 million in Q3 2023 to $225.0 million in Q3 2024.
Worse than expected
4 November 2024 5:46 PM
Quarterly Report
- Net income and earnings per share were lower in Q3 2024 compared to Q3 2023 due to increased expenses.
- Net income and earnings per share were lower for the nine months ended September 30, 2024 compared to the same period in 2023 due to increased expenses.
Capital raise
15 August 2024 11:43 AM
Debt Issuance Announcement
- OG&E has raised $350 million through the issuance of senior notes.
- This is the second tranche of this series of notes, bringing the total raised to $700 million.
Better than expected
6 August 2024 5:42 PM
Quarterly Report
- The company's earnings per share and net income were higher than the same period last year, indicating better than expected results.
- The company expects to be in the top half of its 2024 earnings guidance range, suggesting a positive outlook.
Worse than expected
6 August 2024 5:41 PM
Quarterly Report
- OGE Energy's net income for the first six months of 2024 was lower than the same period in 2023, indicating a worse performance.
Capital raise
6 August 2024 5:41 PM
Quarterly Report
- OGE Energy issued $350 million of 5.45% senior notes due May 15, 2029.
- OG&E increased long-term revolver borrowings by $200 million during the second quarter of 2024.
- OG&E is expected to issue $350 million of senior notes in the third quarter of 2024.
Better than expected
13 June 2024 9:28 AM
Rate Case Settlement Agreement
- The settlement agreement resulted in a significant reduction of the initial rate increase request, from $332.54 million to $126.66 million.
Capital raise
9 May 2024 11:12 AM
Debt Issuance Announcement
- OGE Energy Corp. has raised $350 million through the issuance of senior notes.
- The funds will be used for general corporate purposes.
Worse than expected
30 April 2024 5:42 PM
Quarterly Report
- The company's earnings per diluted share decreased from $0.19 to $0.09 year-over-year, indicating worse than expected results.
- OG&E's earnings per diluted share also decreased from $0.20 to $0.12 year-over-year, indicating worse than expected results.
- The holding company's loss increased from $0.01 to $0.03 per diluted share, indicating worse than expected results.
Capital raise
30 April 2024 5:41 PM
Quarterly Report
- OGE Energy expects to issue up to $350 million of long-term debt in the second quarter of 2024.
- OG&E expects to issue $300 million to $350 million of long-term debt in the second half of 2024.
Worse than expected
30 April 2024 5:41 PM
Quarterly Report
- The company's net income decreased significantly compared to the same period last year, indicating worse than expected results.
Better than expected
1 April 2024 12:14 PM
Proxy Statement
- The company's actual OG&E Earnings Target was $2.12/share, exceeding the target of $2.04/share.
- The company's Environmental Target was achieved at a 200% payout.
- The company's Equivalent Forced Outage Rate was achieved at a 115% payout.
Worse than expected
20 February 2024 7:44 PM
Annual Results
- The company's 2023 earnings per share were lower than the previous year due to the absence of income from natural gas midstream operations and increased operating expenses.
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