OGE Energy Corp. made an appearance in Oklahoma Inc.’s Top 10, ranking eighth after a year in which the company saw significant increases in revenue and earnings per share.
The parent company of Oklahoma electricity supplier OG&E and energy firm Enable Midstream Partners, OGE Energy Corp. narrowly missed the mark to reach the Top 10 last year, ranking 11th.
However, in its rebound from a 2020-influenced pandemic, the company posted a 57% positive change in revenue, which translates into net income of just under $ 340 million in 2021. The jump is the second largest increase in all levels of Oklahoma Inc. business data and is the biggest swing of any company in Oklahoma’s energy sector.
âAlthough the company, I think, outperformed most energy companies in 2020 in the state, I would describe our financial performance as very stable, very strong and predictable.â said Bryan Buckler, CFO of OGE Energy Corp.
Buckler contributed to the company’s success through 2020 and in the first half of this year to a 1.3% increase in the number of OG&E customers, which also created an almost 3% increase in demand for ‘electricity.
âThese new and existing customers are using more electricity as the economy has improved, particularly commercially, attracting more industrial customers or commercial enterprises,â Buckler said. “It helped us achieve strong financial results.”
Another factor contributing to the company’s positive ratings over the past year is a whopping 431% increase in earnings per share from 2020 to 2021. The change was the fourth highest of any company in Oklahoma.
Second-quarter data released by the company in August showed OG&E contributed $ 0.42 per share to earnings of $ 0.39 per share in the second quarter of last year, while Enable contributed earnings of $ 0.16 per share compared to earnings of $ 0.10 per share in the corresponding quarter. Last year.
The net income of OGE Energy Corp. was $ 113 million, or $ 0.56 per share, in the second quarter of 2021, beating the comparable quarter last year by $ 27 million. Meanwhile, OG&E saw its net profit increase by $ 6 million, up from $ 79 million from a year earlier, while Enable topped its 2020 figures by $ 13 million, which generated a net income of $ 32 million for the second quarter of 2021.
The energy and electricity supplier expects to collect between $ 352 and $ 373 million in net income, or $ 1.76 to $ 1.86 per average diluted share, this year, according to its 2021 profit forecast which were reaffirmed when the Company’s second quarter results were announced.
However, the business will face unforeseen circumstances that can impact the bottom line of energy providers, such as storms and winter conditions that cause power outages and increase business expenses.
Currently, OGE Energy Corp.’s subsidiary, OG&E, is trying to recoup $ 760 million from customer spending resulting from a winter storm last February. The proposed solution would shift costs to OG&E customers, potentially increasing monthly payments by $ 2.12 per month for the next 28 years for average residential customers.
Although the company’s cost-of-service model imposes reimbursement on customers, opponents of the proposed plan say the company’s infrastructure was not prepared for extreme weather conditions, only available natural gas. and cheaper was not used to generate electricity and that customers reduced their electricity consumption and suffered blackouts will have to pay for the service they did not receive.
Despite repayments and changing industry factors, senior executives of OGE Energy Corp. are optimistic about its future prospects.
âOur strong customer growth of 1.3% over the past year reflects the combination of very affordable pricing and our ability to respond to business expansion in our markets,â said Sean Trauschke, President and CEO of ‘OGE Energy Corp.
âCombined with our full suite of business and economic development activities, we remain on track for sustained load growth of around 1% going forward, with many more opportunities yet to come. “