OGE Energy (OGE) - 2023 Q4 - Annual Results

Earnings and Net Income - OGE Energy reported earnings of $2.07 per diluted share in 2023, compared to$3.32 per diluted share in 2022, with 2022 earnings including 1.16 per diluted share from natural gas midstream operations that were exited in 2022[1] - OG&E contributed net income of 426.4 million, or $2.12 per diluted share, in 2023, compared to$439.5 million, or $2.19 per diluted share, in 2022, with the decrease primarily due to milder weather, higher depreciation, and increased operation and maintenance expenses[3] - OGE Energy's net income was$416.8 million or $2.07 per diluted share in 2023, compared to$665.7 million, or $3.32 per diluted share, in 2022[5] - For Q4 2023, OGE Energy reported net income of$48.2 million, or $0.24 per diluted share, compared to$50.3 million, or $0.25 per diluted share, in Q4 2022[6] - Net income for 2023 was$426.4 million, down from $439.5 million in 2022, a decrease of 3$2.12 per average diluted share, with a range of $2.06 to$2.18 per average diluted share[7] - OG&E, the electric company, is forecasted to contribute earnings of $2.22 per average diluted share in 2024, while the holding company is expected to report a loss of$0.10 per average diluted share[7] - OGE Energy targets a consolidated earnings per share growth rate of 5% to 7% annually, supported by strong load growth and investments in lower-risk infrastructure projects[9] Operating Revenues and Expenses - Operating revenues decreased to $2,674.3 million in 2023 from$3,375.7 million in 2022, a decline of 20.8%[19] - Residential operating revenues dropped to $1,040.4 million in 2023 from$1,307.0 million in 2022, a 20.4% decrease[21] - Commercial operating revenues fell to $688.4 million in 2023 from$818.3 million in 2022, a 15.9% decline[21] - Industrial operating revenues decreased to $240.5 million in 2023 from$327.5 million in 2022, a 26.6% drop[21] - Oilfield operating revenues declined to $211.9 million in 2023 from$308.8 million in 2022, a 31.4% decrease[21] - Total MWh sales decreased to 30.5 million in 2023 from 31.1 million in 2022, a 1.9% reduction[21] - Total fuel and purchased power cost per kilowatt-hour decreased to 2.837 cents in 2023 from 5.096 cents in 2022, a 44.3% reduction[21] Other Operations and Losses - Other Operations resulted in a loss of $9.6 million, or$0.05 per diluted share, in 2023, compared to a loss of $5.1 million, or$0.03 per diluted share, in 2022, primarily due to higher interest expense[4] Customer and Weather Data - OG&E serves approximately 896,000 customers in Oklahoma and western Arkansas[13] - Number of customers increased to 896,102 in 2023 from 888,759 in 2022, a 0.8% growth[21] - Heating degree days decreased to 3,092 in 2023 from 3,652 in 2022, a 15.3% decline[21] Dividends - OGE Energy declared a Q2 2024 dividend of $0.4182 per common share, payable on April 26, 2024[12]