OGE Energy (US:OGE)2021-05-05 21:48Financial Performance - Operating revenues for Q1 2021 were $1,630.6 million, a significant increase from $431.3 million in Q1 2020, representing a growth of approximately 277%[21] - Net income for Q1 2021 was $52.7 million, compared to a net loss of $491.8 million in Q1 2020, indicating a turnaround in financial performance[21] - The company reported operating income of $48.6 million for Q1 2021, down from $56.3 million in Q1 2020, reflecting a decrease of about 30%[21] - Equity in earnings of unconsolidated affiliates improved to $53.2 million in Q1 2021 from a loss of $746.5 million in Q1 2020, showing a substantial recovery[21] - The company reported a basic earnings per share of $0.26 for Q1 2021, a recovery from a loss per share of $2.46 in Q1 2020[21] - Net income for the three months ended March 31, 2021, was $11.2 million, a decrease from $19.9 million in the same period of 2020, representing a decline of approximately 43.1%[36] - OGE Energy reported a net income of $52.7 million for the three months ended March 31, 2021, compared to a net loss of $491.8 million for the same period in 2020[114] Assets and Liabilities - Total assets increased to $11,788.7 million as of March 31, 2021, up from $10,718.8 million at the end of 2020, marking a growth of approximately 10%[28] - Total liabilities increased to $8,183.2 million as of March 31, 2021, compared to $7,087.0 million at December 31, 2020, reflecting a growth of approximately 15.5%[31] - Total stockholders' equity decreased to $3,605.5 million as of March 31, 2021, from $3,631.8 million at December 31, 2020, a reduction of about 0.7%[33] - The total assets of OGE Energy increased to $11,788.7 million as of March 31, 2021, compared to $10,370.9 million as of March 31, 2020[136] Cash Flow and Expenditures - Cash and cash equivalents decreased to $0 million at the end of Q1 2021 from $145.9 million at the end of Q4 2020, indicating a cash outflow[26] - The company experienced a net cash used in operating activities of $940.2 million in Q1 2021, contrasting with a net cash provided of $103.9 million in Q1 2020, indicating a significant cash outflow[26] - Cash flows from operating activities showed a net cash used of $939.9 million for the three months ended March 31, 2021, compared to a net cash provided of $89.0 million in the same period of 2020[39] - The company incurred capital expenditures of $158.4 million in Q1 2021, compared to $127.2 million in Q1 2020, representing an increase of approximately 24.5%[26] Regulatory Assets and Liabilities - Regulatory assets surged to $1,269.7 million as of March 31, 2021, compared to $415.6 million at the end of 2020, reflecting a significant increase in deferred costs[28] - Current regulatory liabilities decreased to $22.5 million as of March 31, 2021, from $35.1 million at December 31, 2020, showing a reduction of approximately 35.0%[66] - The total non-current regulatory assets rose to $1,269.7 million as of March 31, 2021, compared to $415.6 million at December 31, 2020, marking an increase of about 206.5%[66] - OG&E has deferred $829.4 million to a regulatory asset for costs associated with the February 2021 weather event[161] Debt and Financing - OGE Energy had $1.3 billion in short-term debt as of March 31, 2021, a significant increase from $95.0 million at December 31, 2020[119] - The company entered into a $1.0 billion unsecured 364-day term loan in March 2021 to cover increased fuel and purchased power costs due to extreme cold weather[120] - OGE Energy made a capital contribution of $530.0 million to OG&E during the three months ended March 31, 2021, to assist with fuel and purchased power costs[120] Pension and Employee Compensation - OGE Energy recorded a total net periodic benefit cost of $27.3 million for the three months ended March 31, 2021, compared to $2.7 million for the same period in 2020, reflecting a significant increase due to pension settlement charges[129] - The pension settlement charges amounted to $26.4 million in Q1 2021, which did not require a cash outlay and did not increase total pension expense over time[129] - OGE Energy made a $40.0 million contribution to its Pension Plan in January 2021, with $30.0 million attributed to OG&E[134] - The total compensation expense for OGE Energy was $2.5 million for the three months ended March 31, 2021, compared to $2.0 million in the same period of 2020[108] Operational Highlights - Operating revenues for the electric utility segment reached $1,630.6 million in Q1 2021, a substantial increase from $431.3 million in Q1 2020[136] - The cost of sales for the electric utility segment was $1,346.8 million in Q1 2021, compared to $135.0 million in Q1 2020, indicating a significant rise in operational costs[136] - OG&E's total revenues from contracts with customers reached $1,621.0 million, a significant increase from $420.4 million in the same period of 2020, reflecting a growth of approximately 285%[81] Market and Regulatory Developments - The Oklahoma Grid Enhancement Plan allows for interim recovery of costs capped at $7.0 million annually, effective February 1, 2021[144] - OG&E filed an application on April 26, 2021, seeking OCC approval to securitize costs related to the February 2021 cold weather event[162] - The APSC confirmed the lifting of the moratorium on disconnections on May 3, 2021, with specific conditions for utilities to follow[154] - In April 2021, Oklahoma enacted legislation allowing for the securitization of costs from the February 2021 extreme cold weather event[162]