OGE Energy (US:OGE)2022-05-04 21:38Financial Performance - For the three months ended March 31, 2022, operating revenues were $589.3 million, a decrease of 6.4% from $630.6 million in the same period of 2021[21] - Net income for the same period was $279.5 million, significantly up from $52.7 million in 2021, representing a 429.4% increase[21] - Basic earnings per share increased to $1.40 from $0.26, reflecting a substantial growth in profitability[21] - Operating income rose to $83.1 million, compared to $48.6 million in the prior year, marking an increase of 71.1%[21] - Operating revenues decreased to $589.3 million for the three months ended March 31, 2022, down from $1,630.6 million in the prior year, a decline of 63.9%[37] - Operating income improved to $83.9 million in Q1 2022, compared to $49.1 million in Q1 2021, marking an increase of 70.5%[37] - OGE Energy reported a net income of $39.0 million for the three months ended March 31, 2022, compared to $11.2 million for the same period in 2021, representing a significant increase[64] - Net income for OGE Energy reached $279.5 million in Q1 2022, a substantial increase from $52.7 million in Q1 2021, driven by gains on equity securities[123] Cash Flow and Expenditures - Cash flows from operating activities were $58.9 million, a recovery from a cash outflow of $940.2 million in the same quarter of 2021[26] - Capital expenditures for the quarter were $220.1 million, up from $158.4 million in the prior year[26] - Cash flows from operating activities provided $51.4 million in Q1 2022, a recovery from a cash outflow of $939.9 million in Q1 2021[40] - Capital expenditures for Q1 2022 were $220.1 million, compared to $158.4 million in Q1 2021, representing a rise of 39.0%[40] Assets and Liabilities - Total assets increased to $13,093.6 million as of March 31, 2022, compared to $12,606.4 million at the end of 2021[29] - Total liabilities increased to $8,830.9 million as of March 31, 2022, compared to $8,550.1 million at December 31, 2021, reflecting a growth of 3.3%[32] - Total stockholders' equity rose to $4,262.7 million as of March 31, 2022, up from $4,056.3 million at December 31, 2021, an increase of 5.1%[32] - Short-term debt increased to $731.5 million as of March 31, 2022, compared to $486.9 million at December 31, 2021, reflecting a rise of 50.1%[32] - Total current liabilities increased to $1,342.8 million as of March 31, 2022, from $1,089.6 million at December 31, 2021, an increase of 23.2%[32] - Long-term debt remained relatively stable at $4,497.0 million as of March 31, 2022, compared to $4,496.4 million at December 31, 2021[32] Investments and Gains - The company reported a gain on equity securities of $282.3 million, compared to no gain in the previous year[21] - The equity securities investment in Energy Transfer rose to $1,067.4 million from $785.1 million, indicating a significant increase in investment value[29] - OGE Energy recognized a pre-tax unrealized gain of $282.3 million related to its investment in Energy Transfer's equity securities for the three months ended March 31, 2022[71] - Distributions received from Energy Transfer amounted to $16.7 million during the three months ended March 31, 2022[72] - OGE Energy sold 21.75 million Energy Transfer limited partner units by the end of April 2022, resulting in pre-tax net proceeds of $246.0 million, reducing its ownership to approximately 2%[73] - OGE Energy's investment in Energy Transfer is accounted for as an equity investment with a readily determinable fair value under ASC 321[71] Regulatory and Risk Factors - The company has identified various risk factors that could impact future performance, including economic conditions and regulatory changes[16] - OGE Energy has reserved $13.0 million for potential refunds related to FERC proceedings, which may impact customers through rider mechanisms or the FERC formula rate[136] - The company anticipates an annual electric revenue increase of $4.2 million following the approval of a non-unanimous joint settlement agreement by the APSC, effective April 1, 2022[130] - OGE Energy is currently evaluating the potential impacts of proposed changes to FERC's transmission incentives policy, which could affect its return on equity[138] Employee and Pension Information - The total compensation expense for OGE Energy for the three months ended March 31, 2022, was $2.3 million, slightly down from $2.5 million in the same period of 2021[99] - The settlement cost for the pension plan and restoration of retirement income plan was $9.6 million for the three months ended March 31, 2022, compared to $4.1 million in the same period of 2021[82] - The balance of the pension plan at March 31, 2022, was $(18.3) million, an improvement from $(26.1) million at December 31, 2021[80] - The total net periodic benefit cost for OGE Energy's Pension Plan for the three months ended March 31, 2022, was $13.9 million, down from $27.2 million in the same period of 2021, a decrease of 48.9%[116] - OG&E's total net periodic benefit cost for the Restoration of Retirement Income Plan was $6.0 million for Q1 2022, compared to $26.6 million in Q1 2021, a reduction of 77.5%[117] Regulatory Approvals and Rate Reviews - OG&E has regulatory approval to incur up to $800.0 million in short-term borrowings for a two-year period ending December 31, 2022[113] - OG&E filed for a general rate review seeking a rate increase of $163.5 million and a 10.2 percent return on equity[146] - The amended Arkansas statute allows for recovery of extraordinary costs through securitization, with a financing order to be issued within 135 days[140] - OG&E's motion for special regulatory treatment to defer fuel costs includes a carrying charge of 6.60 percent over a ten-year period[139] - The APSC granted OG&E an extension of its Formula Rate Plan Rider for an additional five years[142] - Initial intervenor testimony for the general rate review was filed on April 27, 2022, with a hearing expected in Q2 2022[146]