Date of report (Date of earliest event reported) | February 27, 2013 | |
OKLAHOMA GAS AND ELECTRIC COMPANY | ||
(Exact Name of Registrant as Specified in Its Charter) | ||
Oklahoma | ||
(State or Other Jurisdiction of Incorporation) | ||
1-1097 | 73-0382390 | |
(Commission File Number) | (IRS Employer Identification No.) | |
321 North Harvey, P.O. Box 321, Oklahoma City, Oklahoma | 73101-0321 | |
(Address of Principal Executive Offices) | (Zip Code) | |
405-553-3000 | ||
(Registrant's Telephone Number, Including Area Code) | ||
(Former Name or Former Address, if Changed Since Last Report) | ||
* Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
* Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
* Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
* Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) Exhibits | ||
Exhibit Number | Description | |
99.01 | Press release dated February 27, 2013, announcing OGE Energy Corp. reports higher earnings for 2012. |
OKLAHOMA GAS AND ELECTRIC COMPANY | |
(Registrant) | |
By: | /s/ Scott Forbes |
Scott Forbes | |
Controller and Chief Accounting Officer | |
• | the financial performance of Enogex's assets without regard to financing methods, capital structure or historical cost basis; |
• | Enogex's operating performance and return on capital as compared to other companies in the midstream energy sector, without regard to financing or capital structure; and |
• | the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities. |
(In millions) | Twelve Months Ended December 31, 2013 (A)(B) | ||
Net income attributable to Enogex Holdings | $ | 132 | |
Add: | |||
Interest expense, net | 33 | ||
Depreciation and amortization expense (C) | 123 | ||
EBITDA | $ | 288 | |
OGE Energy's portion | $ | 228 |
(A) | Based on the midpoint of Enogex Holdings' earnings guidance for 2013. |
(B) | As of November 1, 2010, Enogex Holdings' earnings are no longer subject to tax (other than Texas state margin taxes) and are taxable at the individual partner level. |
(C) | Includes amortization of certain customer-based intangible assets associated with the acquisition from Cordillera Energy Partners III, LLC in November 2011, which is included in gross margin for financial reporting purposes. |
Three Months Ended | Twelve Months Ended | |||||||||||
December 31, | December 31, | |||||||||||
(In millions) | 2012 | 2011 | 2012 | 2011 | ||||||||
Net income attributable to Enogex Holdings | $ | 21.6 | $ | 37.2 | $ | 147.8 | $ | 155.9 | ||||
Add: | ||||||||||||
Interest expense, net | 8.9 | 5.7 | 32.6 | 22.9 | ||||||||
Income tax expense (A) | 0.1 | 0.1 | 0.2 | 0.2 | ||||||||
Depreciation and amortization expense (B) | 35.2 | 21.1 | 111.6 | 77.2 | ||||||||
EBITDA | $ | 65.8 | $ | 64.1 | $ | 292.2 | $ | 256.2 | ||||
OGE Energy's portion | $ | 52.6 | $ | 53.6 | $ | 236.6 | $ | 222.9 |
(A) | As of November 1, 2010, Enogex Holdings' earnings are no longer subject to tax (other than Texas state margin taxes) and are taxable at the individual partner level. |
(B) | Includes amortization of certain customer-based intangible assets associated with the acquisition from Cordillera Energy Partners III, LLC in November 2011, which is included in gross margin for financial reporting purposes. |
OGE Energy Corp. | |||||||||||||||
consolidated statements of income | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(In millions, except per share data) | |||||||||||||||
OPERATING REVENUES | |||||||||||||||
Electric Utility operating revenues | $ | 465.5 | $ | 445.9 | $ | 2,141.2 | $ | 2,211.5 | |||||||
Natural Gas Midstream Operations operating revenues | 396.6 | 439.3 | 1,530.0 | 1,704.4 | |||||||||||
Total operating revenues | 862.1 | 885.2 | 3,671.2 | 3,915.9 | |||||||||||
COST OF GOODS SOLD (exclusive of depreciation and amortization shown below) | |||||||||||||||
Electric Utility cost of goods sold | 182.9 | 193.3 | 819.0 | 966.0 | |||||||||||
Natural Gas Midstream Operations cost of goods sold | 301.6 | 342.8 | 1,099.7 | 1,311.9 | |||||||||||
Total cost of goods sold | 484.5 | 536.1 | 1,918.7 | 2,277.9 | |||||||||||
Gross margin on revenues | 377.6 | 349.1 | 1,752.5 | 1,638.0 | |||||||||||
OPERATING EXPENSES | |||||||||||||||
Other operation and maintenance | 153.8 | 148.9 | 601.5 | 581.2 | |||||||||||
Depreciation and amortization | 100.9 | 81.3 | 371.0 | 307.1 | |||||||||||
Impairment of assets | 0.1 | 1.3 | 0.4 | 6.3 | |||||||||||
Gain on insurance proceeds | — | (3.0 | ) | (7.5 | ) | (3.0 | ) | ||||||||
Taxes other than income | 25.5 | 23.7 | 110.2 | 99.7 | |||||||||||
Total operating expenses | 280.3 | 252.2 | 1,075.6 | 991.3 | |||||||||||
OPERATING INCOME | 97.3 | 96.9 | 676.9 | 646.7 | |||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||
Interest income | 0.1 | 0.1 | 0.6 | 0.5 | |||||||||||
Allowance for equity funds used during construction | 1.3 | 4.3 | 6.2 | 20.4 | |||||||||||
Other income | 4.7 | 8.2 | 17.0 | 19.3 | |||||||||||
Other expense | (5.4 | ) | (9.5 | ) | (16.5 | ) | (21.7 | ) | |||||||
Net other income | 0.7 | 3.1 | 7.3 | 18.5 | |||||||||||
INTEREST EXPENSE | |||||||||||||||
Interest on long-term debt | 40.6 | 37.5 | 158.9 | 146.1 | |||||||||||
Allowance for borrowed funds used during construction | (0.7 | ) | (2.3 | ) | (3.5 | ) | (10.4 | ) | |||||||
Interest on short-term debt and other interest charges | 2.1 | 1.6 | 8.7 | 5.2 | |||||||||||
Interest expense | 42.0 | 36.8 | 164.1 | 140.9 | |||||||||||
INCOME BEFORE TAXES | 56.0 | 63.2 | 520.1 | 524.3 | |||||||||||
INCOME TAX EXPENSE | 12.5 | 20.0 | 135.1 | 160.7 | |||||||||||
NET INCOME | 43.5 | 43.2 | 385.0 | 363.6 | |||||||||||
Less: Net income attributable to noncontrolling interests | 5.0 | 6.8 | 30.0 | 20.7 | |||||||||||
NET INCOME ATTRIBUTABLE TO OGE ENERGY | $ | 38.5 | $ | 36.4 | $ | 355.0 | $ | 342.9 | |||||||
BASIC AVERAGE COMMON SHARES OUTSTANDING | 98.7 | 98.0 | 98.6 | 97.9 | |||||||||||
DILUTED AVERAGE COMMON SHARES OUTSTANDING | 99.4 | 99.4 | 99.1 | 99.2 | |||||||||||
BASIC EARNINGS PER AVERAGE COMMON SHARE ATTRIBUTABLE TO OGE ENERGY COMMON SHAREHOLDERS | $ | 0.39 | $ | 0.37 | $ | 3.60 | $ | 3.50 | |||||||
DILUTED EARNINGS PER AVERAGE COMMON SHARE ATTRIBUTABLE TO OGE ENERGY COMMON SHAREHOLDERS | $ | 0.39 | $ | 0.37 | $ | 3.58 | $ | 3.45 | |||||||
DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.4175 | $ | 0.3925 | $ | 1.5950 | $ | 1.5175 |
OGE Energy Corp. | |||||||||||||||
financial and statistical data | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(In millions) | |||||||||||||||
ELECTRIC UTILITY | |||||||||||||||
Operating revenues by classification | |||||||||||||||
Residential | $ | 170.9 | $ | 172.3 | $ | 878.0 | $ | 943.5 | |||||||
Commercial | 119.4 | 113.7 | 523.5 | 531.3 | |||||||||||
Industrial | 48.3 | 47.8 | 206.8 | 216.0 | |||||||||||
Oilfield | 37.6 | 37.7 | 163.4 | 165.1 | |||||||||||
Public authorities and street light | 47.4 | 44.9 | 202.4 | 207.4 | |||||||||||
Sales for resale | 13.0 | 14.4 | 54.9 | 65.3 | |||||||||||
System sales revenues | 436.6 | 430.8 | 2,029.0 | 2,128.6 | |||||||||||
Off-system sales revenues | 7.0 | 0.7 | 36.5 | 36.2 | |||||||||||
Other | 21.9 | 14.4 | 75.7 | 46.7 | |||||||||||
Total operating revenues | $ | 465.5 | $ | 445.9 | $ | 2,141.2 | $ | 2,211.5 | |||||||
Sales of electricity - MWH (a) sales by classification | |||||||||||||||
Residential | 1.8 | 1.9 | 9.1 | 9.9 | |||||||||||
Commercial | 1.6 | 1.6 | 7.0 | 6.9 | |||||||||||
Industrial | 1.0 | 1.0 | 4.0 | 3.9 | |||||||||||
Oilfield | 0.8 | 0.8 | 3.3 | 3.2 | |||||||||||
Public authorities and street light | 0.8 | 0.8 | 3.3 | 3.2 | |||||||||||
Sales for resale | 0.3 | 0.3 | 1.3 | 1.4 | |||||||||||
System sales | 6.3 | 6.4 | 28.0 | 28.5 | |||||||||||
Off-system sales | 0.3 | — | 1.4 | 1.0 | |||||||||||
Total sales | 6.6 | 6.4 | 29.4 | 29.5 | |||||||||||
Number of customers | 798,110 | 789,146 | 798,110 | 789,146 | |||||||||||
Weighted average cost of energy per KWH (b) - cents | |||||||||||||||
Natural gas | 3.400 | 4.014 | 2.930 | 4.328 | |||||||||||
Coal | 2.367 | 2.129 | 2.310 | 2.064 | |||||||||||
Total fuel | 2.565 | 2.643 | 2.437 | 2.897 | |||||||||||
Total fuel and purchased power | 2.984 | 3.039 | 2.806 | 3.215 | |||||||||||
Degree days | |||||||||||||||
Heating - Actual | 1,203 | 1,264 | 2,667 | 3,359 | |||||||||||
Heating - Normal | 1,329 | 1,403 | 3,349 | 3,631 | |||||||||||
Cooling - Actual | 77 | 89 | 2,561 | 2,776 | |||||||||||
Cooling - Normal | 74 | 61 | 2,092 | 1,911 | |||||||||||
NATURAL GAS MIDSTREAM OPERATIONS | |||||||||||||||
Operating revenues | $ | 422.6 | $ | 455.3 | $ | 1,608.6 | $ | 1,787.1 | |||||||
Operating income | $ | 33.2 | $ | 43.4 | $ | 185.6 | $ | 175.0 | |||||||
Net income attributable to OGE Enogex Holdings | $ | 10.3 | $ | 19.1 | $ | 74.1 | $ | 82.2 | |||||||
Net cash provided from operating activities | $ | 96.0 | $ | 84.1 | $ | 312.7 | $ | 264.9 | |||||||
Capital expenditures | $ | 141.2 | $ | 334.2 | $ | 506.5 | $ | 612.5 | |||||||
Gathered volumes – TBtu/d (c) | 1.51 | 1.36 | 1.41 | 1.36 | |||||||||||
Incremental transportation volumes – TBtu/d (d) | 0.65 | 0.53 | 0.67 | 0.58 | |||||||||||
Total throughput volumes – TBtu/d | 2.16 | 1.89 | 2.08 | 1.94 | |||||||||||
Natural gas processed – TBtu/d | 1.04 | 0.88 | 0.98 | 0.79 | |||||||||||
Condensate sold – million gallons | 9 | 6 | 35 | 27 | |||||||||||
Average condensate sales price per gallon | $ | 1.83 | $ | 2.02 | $ | 1.95 | $ | 2.09 | |||||||
Natural gas liquids sold (keep-whole) – million gallons | 29 | 34 | 162 | 167 | |||||||||||
Natural gas liquids sold (purchased for resale) – million gallons | 179 | 150 | 667 | 487 | |||||||||||
Natural gas liquids sold (percent-of-liquids) – million gallons | 6 | 7 | 24 | 25 | |||||||||||
Natural gas liquids sold (percent-of-proceeds) – million gallons | 3 | 2 | 14 | 6 | |||||||||||
Total natural gas liquids sold – million gallons | 217 | 193 | 867 | 685 | |||||||||||
Average natural gas liquids sales price per gallon | $ | 0.93 | $ | 1.09 | $ | 0.89 | $ | 1.16 | |||||||
Average natural gas sales price per MMBtu (e) | $ | 3.31 | $ | 3.60 | $ | 2.79 | $ | 4.08 | |||||||
(a) Megawatt-hours. | |||||||||||||||
(b) Kilowatt-hours. | |||||||||||||||
(c) Trillion British thermal units per day. | |||||||||||||||
(d) Incremental transportation volumes consist of natural gas moved only on the transportation pipeline. | |||||||||||||||
(e) Million British thermal units. |