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OGE Energy Corp. Reports Operating Results (10-Q)

November 07, 2012 | About:
10qk

10qk

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OGE Energy Corp. (OGE) filed Quarterly Report for the period ended 2012-09-30.

Oge Energy Corp has a market cap of $5.66 billion; its shares were traded at around $57.64 with a P/E ratio of 16.7 and P/S ratio of 1.4. The dividend yield of Oge Energy Corp stocks is 2.7%. Oge Energy Corp had an annual average earning growth of 5.9% over the past 10 years.

Highlight of Business Operations:

Non-Recurring Items. During the nine months ended September 30, 2012, Enogex had an increase in net income of $4.6 million due to a gain on insurance proceeds related to the reimbursement of costs incurred to replace the damaged train at the Cox City natural gas processing plant partially offset by a decrease in net income of $2.3 million related to sales taxes on the gas gathering acquisitions in August 2012, as discussed in Note 2 of Notes to Condensed Consolidated Financial Statements, which Enogex does not consider to be reflective of its ongoing performance. During the nine months ended September 30, 2011, Enogex had an increase in net income of $2.3 million relating to the sale of the Harrah processing plant and the associated Wellston and Davenport gathering assets in April 2011, which Enogex does not consider to be reflective of its ongoing performance.

Operating revenues were $721.0 million during the three months ended September 30, 2012 as compared to $774.8 million during the same period in 2011, a decrease of $53.8 million, or 6.9 percent. Cost of goods sold was $271.8 million during the three months ended September 30, 2012 as compared to $334.7 million during the same period in 2011, a decrease of $62.9 million, or 18.8 percent. Gross margin was $449.2 million during the three months ended September 30, 2012 as compared to $440.1 million during the same period in 2011, an increase of $9.1 million, or 2.1 percent. The below factors contributed to the change in gross margin:

Operating revenues were $1,675.7 million during the nine months ended September 30, 2012 as compared to $1,765.6 million during the same period in 2011, a decrease of $89.9 million, or 5.1 percent. Cost of goods sold was $671.9 million during the nine months ended September 30, 2012 as compared to $808.4 million during the same period in 2011, a decrease of $136.5 million, or 16.9 percent. Gross margin was $1,003.8 million during the nine months ended September 30, 2012 as compared to $957.2 million during the same period in 2011, an increase of $46.6 million, or 4.9 percent. The below factors contributed to the change in gross margin:

Non-Recurring Items. During the nine months ended September 30, 2012, Enogex had an increase in net income of $4.6 million due to a gain on insurance proceeds related to the reimbursement of costs incurred to replace the damaged train at the Cox City natural gas processing plant partially offset by a decrease in net income of $2.3 million related to sales taxes on the gas gathering acquisitions in August 2012, as discussed in Note 2 of Notes to Condensed Consolidated Financial Statements, which Enogex does not consider to be reflective of its ongoing performance. During the nine months ended September 30, 2011, Enogex had an increase in net income of $2.3 million relating to the sale of the Harrah processing plant and the associated Wellston and Davenport gathering assets in April 2011, which Enogex does not consider to be reflective of its ongoing performance.

The balance of Accounts Receivable, Net, and Accrued Unbilled Revenues was $453.1 million and $381.8 million at September 30, 2012 and December 31, 2011, respectively, an increase of $71.3 million, or 18.7 percent, primarily due to an increase in billings to OG&E's customers reflecting higher usage due to warmer weather and higher seasonal electric rates in September 2012 as compared to December 2011 partially offset by a decrease at Enogex due to lower natural gas sales volumes and prices and the timing of customer payments received.

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