OGE Energy a Penny Ahead - Analyst Blog

OGE Energy Corporation (OGE) reported second quarter EPS of 78 cents, beating the Zacks Consensus Estimate of 77 cents by a penny. The results also beat the year-ago quarterly EPS of 74 cents.

Operational Results

OGE Energy’s operating revenues increased 37.7% year-over-year to $887.2 million in the reported quarter, soundly beating the Zacks Consensus Estimate of $680 million for the quarter. Electric Utility revenues increased to $512.8 million compared to $425.3 million in the year-ago quarter. Natural Gas Pipeline revenues increased to $374.4 million from $218.8 million in the year-ago quarter.

OGE Energy's operating income was $151.5 million compared with $126.4 million in the year-ago quarter. Net income was $77.9 million compared to $70.9 million in the year-ago quarter.

Segmental Results

OG&E's gross profit was $282 million compared with $237 million in the year-ago quarter. The increase was due primarily to higher electricity rates. Net income was $60 million compared with $56 million in the year-ago quarter.

Enogex's gross profit was $103 million compared with $84 million in the year-ago quarter. The increase was primarily due to higher natural gas liquids prices, a 19% increase in processing volumes and record natural gas gathering volumes. Net income was $22 million compared to $16 million in the year-ago quarter.

Outlook

OGE Energy reaffirmed its fiscal 2010 earnings guidance range of $2.70 – $2.95 per share.

We are currently Neutral on the Zacks #3 Rank (Hold) stock.
 
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