OGE Energy Corp. (NYSE: OGE), the parent company of Oklahoma Gas and Electric Company ("OG&E"), today reported earnings of $1.09 per diluted share during the three months that ended September 30, 2024, compared to $1.20 per diluted share in the same period 2023.
- OG&E, a regulated electric company, contributed earnings of $1.12 per diluted share, compared to earnings of $1.22 per diluted share in the third quarter 2023.
- Other operations, which includes the holding company, contributed a loss of $0.03 per diluted share, compared to a loss of $0.02 per diluted share in the third quarter 2023.
"Delivering reliable, safe, resilient energy at some of the lowest rates in the nation is OG&E's north star," said Sean Trauschke, OGE Energy Corp. Chairman, President and CEO. "Strong weather normalized energy demand across all sectors combined with continued customer growth and outstanding operational excellence including increased digital adoption among our customers delivered solid third quarter results."
Third Quarter 2024 results
OG&E contributed net income of $225.0 million, or $1.12 per diluted share, in the third quarter compared to $246.1 million, or $1.22 per diluted share, in the same period 2023. The decrease in net income was primarily due to expected higher depreciation and interest expense on a growing asset base, as well as higher operation and maintenance expense and income tax expense, partially offset by robust load growth, which offset the impact of milder weather compared to last year.
Other Operations resulted in a loss of $6.3 million, or $0.03 per diluted share, in the third quarter compared to a loss of $4.2 million, or $0.02 per diluted share, in the same period 2023. The increase in net loss was primarily due to higher interest expense, partially offset by a higher income tax benefit.
OGE Energy's net income was $218.7 million or $1.09 per diluted share in the third quarter, compared to earnings of $241.9 million, or $1.20 per diluted share, in the same period 2023.
2024 Outlook
Due to strong load growth and warmer than normal weather, OGE Energy expects 2024 consolidated earnings at the top of its original guidance range of $2.06 to $2.18 per average diluted share. The guidance assumes, among other things, approval of the uncontested rate review settlement by the Oklahoma Corporation Commission in 2024, approximately 201.5 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. See OGE Energy's 2023 Form 10-K for other key factors and assumptions underlying its 2024 guidance.
