Enogex LLC (Enogex), a midstream natural gas pipeline business, recorded earnings of $0.16 per share for the first quarter of 2009, compared with $0.24 per share in the year-ago quarter. Oklahoma Gas and Electric Company (OG&E), a regulated electric utility, posted earnings of $0.01 per share in the first quarter, compared with a loss of $0.12 per share in the year-ago quarter. The holding company (including the marketing business) posted earnings of $0.01 per share for the first quarter of 2009, compared with $0.02 per share in the year-ago quarter.
Enogex and OG&E are subsidiaries of OGE Energy.
OGE Energy also reaffirmed its 2009 full-year earnings guidance of $2.30 to $2.60 per share.
Discussion of First Quarter 2009:
OGE Energy reported gross margin on revenues of $253 million in the first quarter, compared with $246 million in the year-ago quarter. Operating income was $52 million, compared with $48 million in the year-ago quarter. Net income attributable to OGE Energy was $17 million in the first quarter, compared to $13 million in the year-ago quarter.
OG&E reported gross margin on revenues of $166 million in the first quarter, compared with $146 million in the year-ago quarter. The increase was due mainly to revenues linked with the Redbud power plant, acquired in September 2008. In the first quarter of 2009, the positive effect of customer growth was offset by milder wintertime weather compared to the year-ago quarter. OG&E recorded first-quarter 2009 net income of $1.3 million, compared with a net loss of $11.3 million in the comparable quarter a year ago.
Enogex reported gross margin on revenues of $85 million in the first quarter, compared with $95 million in the year-ago quarter. The decrease was manily due to the lower commodity spreads in the gathering and processing business, partially offset by higher margins in the transportation and storage business. Net income was $15 million in the first quarter of 2009, compared with $23 million in the year-ago quarter.
2009 Outlook:
OGE Energy has reaffirmed its 2009 consolidated earnings guidance at $2.30 – $2.60 per diluted share. The guidance assumes around 96 million to 97 million average diluted shares outstanding and normal weather.
The 2009 guidance includes:
OG&E: $1.83 to $1.98 per share on net income of $177 million to $191 million.
Enogex: $0.53 to $0.70 per share on net income of $51 million to $68 million.
Holding company (including the marketing business): a loss of $0.05 to $0.10 per share on a net loss of $5 million to $10 million.
We’re pleased to report solid results for the first quarter, despite a weaker economy, lower commodity margins and milder weather, said Pete Delaney, OGE Energy chairman, president and chief executive officer. The results reflect our active management of operating and capital costs at both OG&E and Enogex.
