Calmer weather helps OGE Energy post $55 million first-quarter profit

Even as storms rolled across the state Thursday morning, OGE Energy Corp. CEO Sean Trauschke told analysts and investors the Oklahoma City-based utility company has benefited from unusually calm weather to start the year.

“It feels good to have the first quarter behind us with positive weather,” he said. “For the first time in a number of years, we’ve begun the year with favorable weather.”

Despite the relatively calm first four months of the year, storms kicked up early in May, and Trauschke said utility crews will be ready for typically unpredictable spring and summer weather.

“Weather changes and (it) is not something you can control. What does not change is our execution and focus on getting better,” Trauschke said Thursday. “We had another solid quarter of execution by everyone in the company.”

OGE generated a profit of $55 million, or 27 cents a share, in the first quarter, up from $36 million, or 18 cents a share, in the year-ago period. Revenues increased to nearly $493 million, up from $456 million in the first quarter of 2017.

Utility company Oklahoma Gas and Electric Co. recorded a net income of $31 million in the quarter, up from $16 million one year ago. Trauschke attributed the increased profits to fewer weather-related maintenance expenses and rate increases put in

place in May 2017.

OG&E has added about 7,200 new customers over the past year, growing near its historical average of 1 percent. The utility also has experienced a 4 percent growth in oil field sales and a 5 percent increase in industrial sales.

“That’s a good inflection point for an improving economic outlook in our service territory,” Trauschke said. “We’ve

mentioned for a number of quarters new businesses that have been relocated to our service territory. We’re hopeful there will be more to come. It’s a good reflection of a recovering economy.”

OG&E’s new natural gas-fired power plant at the upgraded Mustang Energy Center already has produced more power this year than the legacy unit did in all of

2017, Trauschke said.

“Mustang Energy Center is more efficient, more sustainable and more responsive,” he said.

OGE on Thursday reaffirmed its previous forecast for full-year profits of between $380 million and $410 million, or $1.90 to $2.05 a share.

OGE shares gained 64 cents, or 1.9 percent, in trading Thursday.