OGE Energy (US:OGE)2025-02-18 23:03Financial Performance - OGE Energy Corp. reported earnings of $2.19 per diluted share in 2024, an increase of 5.8% from $2.07 per diluted share in 2023[1]. - OG&E contributed net income of $469.9 million, or $2.33 per diluted share, in 2024, compared to $426.4 million, or $2.12 per diluted share, in 2023, reflecting a 10.4% increase in earnings[3]. - OGE Energy's net income for 2024 was $441.5 million, compared to $416.8 million in 2023, marking a 5.9% increase[4]. - The fourth quarter of 2024 saw net income of $101.9 million, or $0.50 per diluted share, compared to $48.2 million, or $0.24 per diluted share, in Q4 2023, indicating a significant increase[5]. - The total operating revenues for the year ended December 31, 2024, were $2,985.3 million, a 11.6% increase from $2,674.3 million in 2023[20]. Revenue and Sales Growth - The company's consolidated operating revenues for 2024 were $2,985.3 million, up from $2,674.3 million in 2023, representing an increase of 11.6%[16]. - Total operating revenues for Q4 2024 reached $760.5 million, a 34.1% increase from $566.7 million in Q4 2023[20]. - System sales revenues increased to $652.2 million in Q4 2024, up 28.4% from $507.6 million in Q4 2023[20]. - Integrated market revenues increased to $23.2 million in Q4 2024, up from $13.9 million in Q4 2023, a growth of 67.6%[20]. Customer Growth and Demand - The company expects to maintain strong customer growth and demand for electricity, supported by the completion of two new natural-gas power generation units[2]. - The company has approximately 907,000 customers in Oklahoma and western Arkansas, indicating a stable customer base for future growth[12]. - The number of customers grew to 906,952, an increase from 896,102 in the previous year[20]. Cost and Pricing Factors - The weighted-average cost of natural gas per kilowatt-hour rose to 3.770 cents in Q4 2024 from 3.216 cents in Q4 2023[20]. - Total fuel and purchased power costs increased to 3.751 cents per kilowatt-hour in Q4 2024, compared to 2.667 cents in Q4 2023[20]. - The company reported a provision for rate refund of $40.5 million in Q4 2024, compared to no provision in Q4 2023[20]. Future Guidance - The midpoint of OGE Energy's consolidated earnings guidance for 2025 is $2.27 per average diluted share, with a range of $2.21 to $2.33 per share, projecting annual growth of 5% to 7%[8]. Operational Challenges - Other operations reported a loss of $28.4 million, or $0.14 per diluted share, in 2024, compared to a loss of $9.6 million, or $0.05 per diluted share, in 2023, indicating increased financial pressure in this segment[4]. - The company experienced a decrease in heating degree days, with actual heating degree days at 979 compared to 1,166 in the previous year[20].