0000074145-13-000022.txt : 20131106 0000074145-13-000022.hdr.sgml : 20131106 20131106082306 ACCESSION NUMBER: 0000074145-13-000022 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20131106 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20131106 DATE AS OF CHANGE: 20131106 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OKLAHOMA GAS & ELECTRIC CO CENTRAL INDEX KEY: 0000074145 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 730382390 STATE OF INCORPORATION: OK FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-01097 FILM NUMBER: 131194764 BUSINESS ADDRESS: STREET 1: 321 NORTH HARVEY STREET 2: PO BOX 321 CITY: OKLAHOMA CITY STATE: OK ZIP: 73101-0321 BUSINESS PHONE: 4055533000 MAIL ADDRESS: STREET 1: 321 N HARVEY STREET 2: P O BOX 321 CITY: OKLAHOMA CITY STATE: OK ZIP: 73101 8-K 1 oge8-k11x6x13.htm OG&E 8-K OG&E 8-K 11-6-13


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported)
November 6, 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)
 
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
    
* 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))





Item 2.02. Results of Operations and Financial Condition

On November 6, 2013, OGE Energy Corp., the parent company of Oklahoma Gas and Electric Company ("OG&E"), issued a press release describing OGE Energy Corp.'s consolidated financial results for the quarter ended September 30, 2013, which is furnished as Exhibit 99.01 and incorporated herein by reference. As described in the press release, OG&E, a regulated electric utility, recorded net income of $172 million for the quarter ended September 30, 2013 as compared to $167 million for the quarter ended September 30, 2012. For further information, see the press release attached as Exhibit 99.01.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits
 
 
 
 
 
        Exhibit Number
 
                    Description
 
 
 
99.01
 
Press release dated November 6, 2013, announcing OGE Energy Corp. reports third quarter results.





SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


            
 
OKLAHOMA GAS AND ELECTRIC COMPANY
 
(Registrant)
 
 
By:
/s/ Scott Forbes
 
    Scott Forbes
 
  Controller and Chief Accounting Officer
 
 

November 6, 2013



EX-99.01 2 exhibit9901-pressreleaseq3.htm EXHIBIT 99.01 Exhibit 99.01 - Press Release (Q3 2013)


Exhibit 99.01

OGE Energy Corp. reports third quarter results
Impact of Enable Partnership increases 2013 earnings guidance

OKLAHOMA CITY - OGE Energy Corp. (NYSE: OGE), the parent company of Oklahoma Gas and Electric Company ("OG&E"), and holder of 28.5 percent limited partner interest and 50 percent general partner interest in Enable Midstream Partners, LP, today reported earnings of $1.08 per diluted share for the three months ended September 30, 2013 compared to $0.94 per diluted share for the third quarter of 2012. The presentation of the results and 2013 earnings guidance reflect the 2 for 1 stock split which became effective July 1, 2013.

OG&E, a regulated electric utility, contributed earnings of $0.86 per share in the third quarter, compared with earnings of $0.84 per share in the third quarter last year. OGE Energy's interest in the natural gas midstream operations contributed earnings of $0.23 per share compared with earnings from Enogex of $0.09 per share in the year-ago quarter. The holding company posted a loss of $0.01 per share in the third quarter of 2013 compared to breakeven results for the same period in 2012.

"The impact of the Enable transaction is driving year-to-date results,” said OGE Energy Corp. Chairman, President and CEO Pete Delaney. “OG&E is in line with expectations as FERC transmission projects continue to be the driver behind the increase in weather adjusted earnings. Our projection is for 2013 utility earnings to be relatively flat compared to 2012. At Enable, we continue to focus on integration and a planned initial public offering in 2014."

Discussion of Third Quarter 2013
OGE Energy's net income attributable to OGE Energy was $215 million in the third quarter, compared to $186 million in the year-ago quarter.

OG&E's gross margin on revenues was $450 million in the third quarter, compared with $449 million in the comparable quarter last year. Net income at the utility was $172 million, compared to $167 million in the year-ago quarter. The slight increase in gross margin was primarily due to revenues associated with transmission projects and new customer growth, partially offset by milder weather. Higher net income was driven primarily by lower operating expenses due to the timing of power plant maintenance which is currently underway.

Natural Gas Midstream Operations' reported equity income to OGE Energy Corp. of $46 million for the third quarter of 2013 compared to $18 million for the same period in 2012. The increase was primarily due to positive accounting adjustments and the accretion resulting from the formation of the Enable midstream partnership.

2013 Outlook
The Company's 2013 consolidated earnings guidance has been increased from between $335 million to $360 million of net income, or $1.68 to $1.80 per average diluted share to between $360 million and $380 million of net income, or $1.80 to $1.90 per average diluted share based primarily on the accretive impact of the formation of Enable Midstream Partners. This guidance assumes normal weather for the remainder of the year and includes the impact from OGE Energy's equity interest in Enable Midstream Partners. See the Company's 2012 Form 10-K and Form 10-Q for the period ending September 30, 2013 for other key factors and assumptions underlying its 2013 earnings guidance.





Conference Call Webcast
OGE Energy will host a conference call for discussion of the results and the outlook for the rest of 2013 on Wednesday, November 6, at 8 a.m. CST. The conference will be available through www.oge.com. OGE Energy Corp. is the parent company of OG&E, a regulated electric utility with approximately 805,000 customers in Oklahoma and western Arkansas. In addition, OGE holds a 28.5 percent limited partner interest and a 50 percent general partner interest of Enable Midstream, created by the merger of OGE's Enogex LLC midstream subsidiary and the pipeline and field services businesses of Houston-based CenterPoint Energy.

Some of the matters discussed in this news release may contain forward-looking statements that are subject to certain risks, uncertainties and assumptions.  Such forward-looking statements are intended to be identified in this document by the words "anticipate", "believe", "estimate", "expect", "intend", "objective", "plan", "possible", "potential", "project" and similar expressions.  Actual results may vary materially. Factors that could cause actual results to differ materially include, but are not limited to: general economic conditions, including the availability of credit, access to existing lines of credit, access to the commercial paper markets, actions of rating agencies and their impact on capital expenditures; the ability of the Company and its subsidiaries to access the capital markets and obtain financing on favorable terms as well as inflation rates and monetary fluctuations; prices and availability of electricity, coal, natural gas and natural gas liquids; the timing and extent of changes in commodity prices, particularly natural gas and natural gas liquids, the competitive effects of the available pipeline capacity in the regions Enable Midstream Partners serves, and the effects of geographic and seasonal commodity price differentials, including the effects of these circumstances on re-contracting available capacity on Enable Midstream Partners' interstate pipelines; the timing and extent of changes in the supply of natural gas, particularly supplies available for gathering by Enable Midstream Partners' gathering and processing business and transporting by Enable Midstream Partners' interstate pipelines, including the impact of natural gas and natural gas liquids prices on the level of drilling and production activities in the regions Enable Midstream Partners serves; business conditions in the energy and natural gas midstream industries; competitive factors including the extent and timing of the entry of additional competition in the markets served by the Company; unusual weather; availability and prices of raw materials for current and future construction projects; Federal or state legislation and regulatory decisions and initiatives that affect cost and investment recovery, have an impact on rate structures or affect the speed and degree to which competition enters the Company's markets; environmental laws and regulations that may impact the Company's operations; changes in accounting standards, rules or guidelines; the discontinuance of accounting principles for certain types of rate-regulated activities; the cost of protecting assets against, or damage due to, terrorism or cyber-attacks and other catastrophic events; advances in technology; creditworthiness of suppliers, customers and other contractual parties; difficulty in making accurate assumptions and projections regarding future revenues and costs associated with the Company's equity investment in Enable Midstream Partners that the Company does not control; the risk that Enable Midstream Partners may not be able to successfully integrate the operations of Enogex LLC and the businesses contributed by a wholly-owned subsidiary of CenterPoint Energy, Inc.; and other risk factors listed in the reports filed by the Company with the Securities and Exchange Commission including those listed in Risk Factors and Exhibit 99.01 to the Company's Form 10-K for the year ended December 31, 2012.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities described herein, nor shall there be any sale of such securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any such offering may be made only by means of a prospectus.

Note: Consolidated Statements of Income, Financial and Statistical Data attached.





OGE Energy Corp.
 
 
 
 
consolidated statements of income
 
 
 
 
(unaudited)
 
 
 
 
 
Three Months Ended
Nine Months Ended
 
September 30,
September 30,
 
2013
2012
2013
2012
 
(In millions, except per share data)
OPERATING REVENUES
 
 
 
 
Electric Utility operating revenues
$
723.2

$
721.0

$
1,753.3

$
1,675.7

Natural Gas Midstream Operations operating revenues

392.4

605.5

1,133.4

Total operating revenues
723.2

1,113.4

2,358.8

2,809.1

COST OF GOODS SOLD (exclusive of depreciation and amortization shown below)
 
 
 
 
Electric Utility cost of goods sold
273.0

259.8

715.2

636.1

Natural Gas Midstream Operations cost of goods sold

279.8

481.4

798.1

Total cost of goods sold
273.0

539.6

1,196.6

1,434.2

Gross margin on revenues
450.2

573.8

1,162.2

1,374.9

OPERATING EXPENSES
 
 
 
 
Other operation and maintenance
102.2

147.1

372.2

447.7

Depreciation and amortization
65.4

93.0

231.7

270.1

Impairment of assets



0.3

Gain on insurance proceeds



(7.5
)
Taxes other than income
21.7

29.7

78.1

84.7

Total operating expenses
189.3

269.8

682.0

795.3

OPERATING INCOME
260.9

304.0

480.2

579.6

OTHER INCOME (EXPENSE)
 
 
 
 
Equity in earnings of unconsolidated affiliates
35.1


53.6


Allowance for equity funds used during construction
1.7

1.3

4.4

4.9

Other income
6.2

2.6

25.4

12.8

Other expense
(5.2
)
(5.6
)
(15.9
)
(11.1
)
Net other income (expense)
37.8

(1.7
)
67.5

6.6

INTEREST EXPENSE
 
 
 
 
Interest on long-term debt
35.0

40.2

110.7

118.3

Allowance for borrowed funds used during construction
(0.9
)
(0.8
)
(2.3
)
(2.8
)
Interest on short-term debt and other interest charges
(0.4
)
2.2

3.8

6.6

Interest expense
33.7

41.6

112.2

122.1

INCOME BEFORE TAXES
265.0

260.7

435.5

464.1

INCOME TAX EXPENSE
60.7

68.3

110.2

122.6

NET INCOME
204.3

192.4

325.3

341.5

Less: Net income attributable to noncontrolling interests

6.9

6.2

25.0

NET INCOME ATTRIBUTABLE TO OGE ENERGY
$
204.3

$
185.5

$
319.1

$
316.5

 
 
 
 
 
BASIC AVERAGE COMMON SHARES OUTSTANDING
198.4

197.4

198.1

197.0

DILUTED AVERAGE COMMON SHARES OUTSTANDING
199.7

198.3

199.3

197.9

 
 
 
 
 
BASIC EARNINGS PER AVERAGE COMMON SHARE ATTRIBUTABLE TO OGE ENERGY COMMON SHAREHOLDERS
$
1.08

$
0.94

$
1.67

$
1.61

 
 
 
 
 
DILUTED EARNINGS PER AVERAGE COMMON SHARES ATTRIBUTABLE TO OGE ENERGY COMMON SHAREHOLDERS
$
1.08

$
0.94

$
1.66

$
1.60

 
 
 
 
 
DIVIDENDS DECLARED PER COMMON SHARE
$
0.20875

$
0.19625

$
0.62625

$
0.58875





OGE Energy Corp.
 
 
 
 
financial and statistical data
 
 
 
 
(unaudited)
 
 
 
 
 
Three Months Ended
Nine Months Ended
 
September 30,
September 30,
 
2013
2012
2013
2012
 
(In millions)
ELECTRIC UTILITY
 
 
 
 
Operating revenues by classification
 
 
 
 
Residential
$
307.6

$
321.7

$
709.9

$
707.1

Commercial
176.2

170.2

428.2

404.1

Industrial
66.8

63.2

171.0

158.5

Oilfield
51.1

48.5

135.9

125.8

Public authorities and street light
67.7

64.9

165.3

155.0

Sales for resale
15.9

16.0

45.7

41.9

System sales revenues
685.3

684.5

1,656.0

1,592.4

Off-system sales revenues
5.8

15.5

11.2

29.5

Other
32.1

21.0

86.1

53.8

Total operating revenues
$
723.2

$
721.0

$
1,753.3

$
1,675.7

Sales of electricity - Megawatt-hour sales by classification
 
 
 
 
Residential
2.9

3.2

7.2

7.3

Commercial
2.0

2.1

5.3

5.4

Industrial
1.1

1.0

3.0

3.0

Oilfield
0.9

0.8

2.5

2.5

Public authorities and street light
0.9

0.9

2.4

2.5

Sales for resale
0.4

0.4

1.0

1.0

System sales
8.2

8.4

21.4

21.7

Off-system sales
0.1

0.5

0.3

1.1

Total sales
8.3

8.9

21.7

22.8

Number of customers
804,521

796,696

804,521

796,696

Weighted average cost of energy per kilowatt-hour - cents
 
 
 
 
Natural gas
3.758

2.939

3.838

2.822

Coal
2.290

2.354

2.293

2.295

Total fuel
2.746

2.554

2.792

2.403

Total fuel and purchased power
3.077

2.839

3.164

2.755

Degree days
 
 
 
 
Heating - Actual
3

7

2,168

1,464

Heating - Normal
19

19

2,020

2,020

Cooling - Actual
1,418

1,630

2,018

2,484

Cooling - Normal
1,380

1,380

2,018

2,018