0001021635-21-000142.txt : 20210805 0001021635-21-000142.hdr.sgml : 20210805 20210804181409 ACCESSION NUMBER: 0001021635-21-000142 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20210805 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20210805 DATE AS OF CHANGE: 20210804 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OGE ENERGY CORP. CENTRAL INDEX KEY: 0001021635 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 731481638 STATE OF INCORPORATION: OK FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12579 FILM NUMBER: 211145513 BUSINESS ADDRESS: STREET 1: 321 N HARVEY STREET 2: P.O. 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: 73101-0321 FORMER COMPANY: FORMER CONFORMED NAME: OGE ENERGY CORP DATE OF NAME CHANGE: 19960827 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: 211145514 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 oge-20210805.htm 8-K oge-20210805
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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)August 5, 2021
(Commission File Number)(Exact Name of Registrants as Specified in Their Charters)(I.R.S. Employer Identification No.)
1-12579OGE ENERGY CORP.73-1481638
1-1097OKLAHOMA GAS AND ELECTRIC COMPANY73-0382390
Oklahoma
(State or Other Jurisdiction of Incorporation)
321 North HarveyP.O. Box 321Oklahoma CityOklahoma73101-0321
(Address of Principal Executive Offices)(Zip Code)

(405) 553-3000
(Registrant's telephone number, including area code)
Not Applicable
(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))

Securities registered pursuant to Section 12(b) of the Act:
RegistrantTitle of each classTrading Symbol(s)Name of each exchange on which registered
OGE Energy Corp.Common StockOGENew York Stock Exchange
Oklahoma Gas and Electric CompanyNoneN/AN/A

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2). ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02. Results of Operations and Financial Condition

OGE Energy Corp. ("OGE Energy") is the parent company of Oklahoma Gas and Electric Company ("OG&E"), a regulated electric utility with approximately 875,000 customers in Oklahoma and western Arkansas. In addition, OGE Energy holds a 25.5 percent limited partner interest and a 50 percent general partner interest in Enable Midstream Partners, LP.
On August 5, 2021, OGE Energy issued a press release announcing its financial results for the quarter ended June 30, 2021. A copy of such press release is furnished as Exhibit 99.01 and is incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits
(d) Exhibits
        Exhibit Number
                    Description
99.01
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

This combined Current Report on Form 8-K is being furnished separately by OGE Energy and OG&E (Registrants). Information contained herein relating to any individual Registrant has been furnished by such Registrant on its own behalf. No Registrant makes any representation as to information relating to any other Registrant.




SIGNATURE

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


OGE ENERGY CORP.
OKLAHOMA GAS AND ELECTRIC COMPANY
(Registrant)
By:/s/ Sarah R. Stafford
Sarah R. Stafford
 Controller and Chief Accounting Officer

August 5, 2021


EX-99.01 2 exhibit99018-5x21.htm EX-99.01 Document
Exhibit 99.01
OGE Energy Corp. reports second quarter results
On track for sustained load growth of 1%, driven by affordability and reliability, led by an expected 75MW of new growth in 2021 from large business customers
Emerging projects driving increase in 2021 investment plan of $75 million

OKLAHOMA CITY — OGE Energy Corp. (NYSE: OGE), the parent company of Oklahoma Gas and Electric Company (“OG&E”), and holder of 25.5 percent limited partner interest and 50 percent general partner interest in Enable Midstream Partners LP (“Enable”), today reported earnings of $0.56 per diluted share for the three months ended June 30, 2021 compared to earnings of $0.43 per diluted share for the second quarter of 2020.
OG&E contributed earnings of $0.42 per share in the second quarter, compared with earnings of $0.39 per share in the second quarter last year
Natural Gas Midstream Operations contributed earnings of $0.16 per share, compared with earnings of $0.10 per share in the second quarter last year
The holding company reported a loss of $0.02 per share compared to a loss of $0.06 per share in the second quarter of 2020.

“Our strong customer growth of 1.3% over the last year reflects the combination of highly affordable rates and our ability to service commercial expansion in our markets,” said OGE Energy Corp. Chairman, President and CEO Sean Trauschke. “When combined with our full slate of business and economic development activity, we remain on track for sustained load growth of approximately 1% going forward, with many additional opportunities still ahead.”

Second Quarter 2021
OGE Energy Corp.'s net income was $113 million or $0.56 per share in the second quarter, compared to $86 million or $0.43 per share in the year-ago quarter.

OG&E net income was approximately $85 million or $0.42 per share in the second quarter, compared to $79 million or $0.39 per share in the comparable quarter last year. Higher quarterly results were primarily due to the recovery of increased investments and improved load from customer growth partially offset by higher depreciation on a growing asset base and mild weather.

Natural Gas Midstream Operations contributed net income to OGE Energy Corp. of $32 million or $0.16 per share in the second quarter, compared to $19 million or $0.10 per share in the same period in 2020. The increase in net income was driven by higher commodity prices, higher gathering and processing volumes, as well as a benefit from the reduction in the Oklahoma corporate tax rate. In addition, Enable Midstream issued cash distributions to OGE Energy Corp. of approximately $18 million in each of the second quarters of 2021 and 2020.

2021 Outlook
The Company reaffirms its 2021 OG&E earnings guidance, in the lower half of the range, between approximately $352 million and $373 million of net income, or $1.76 to $1.86 per average diluted share. As indicated in its 2020 Form 10-K, OGE Energy Corp. did not issue 2021 consolidated earnings guidance due to Enable not issuing an earnings outlook as a result of the proposed merger between Enable and Energy Transfer. See OGE Energy Corp.'s 2020 Form 10-K for other key factors and assumptions underlying its 2021 guidance.

Conference Call Webcast
OGE Energy Corp. will host a conference call for discussion of the results on Thursday, August 5, at 8 a.m. CDT. The conference will be available through www.ogeenergy.com. OGE Energy Corp. is the parent company of OG&E, a regulated electric utility with approximately 875,000 customers in Oklahoma and western Arkansas. In addition, OGE Energy Corp. holds a 25.5 percent limited partner interest and a 50 percent general partner interest of Enable Midstream, created by the merger of OGE Energy Corp.'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”, “target” 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; the ability to obtain timely and sufficient rate relief to allow for recovery of items such as capital expenditures, fuel


Exhibit 99.01
costs, operating costs, transmission costs and deferred expenditures; prices and availability of electricity, coal, natural gas and natural gas liquids (“NGLs”); the timing and extent of changes in commodity prices, particularly natural gas and NGLs, the competitive effects of the available pipeline capacity in the regions Enable serves, and the effects of geographic and seasonal commodity price differentials, including the effects of these circumstances on re-contracting available capacity on Enable's interstate pipelines; the timing and extent of changes in the supply of natural gas, particularly supplies available for gathering by Enable's gathering and processing business and transporting by Enable's interstate and intrastate pipelines, including the impact of natural gas and NGLs prices on the level of drilling and production activities in the regions Enable serves; business conditions in the energy and natural gas midstream industries, including the demand for natural gas, NGLs, crude oil and midstream services; competitive factors including the extent and timing of the entry of additional competition in the markets served by the Company; the impact on demand for our services resulting from cost-competitive advances in technology, such as distributed electricity generation and customer energy efficiency programs; technological developments, changing markets and other factors that result in competitive disadvantages and create the potential for impairment of existing assets; factors affecting utility operations such as unusual weather conditions; catastrophic weather-related damage; unscheduled generation outages, unusual maintenance or repairs; unanticipated changes to fossil fuel, natural gas or coal supply costs or availability due to higher demand, shortages, transportation problems or other developments; environmental incidents; or electric transmission or gas pipeline system constraints; availability and prices of raw materials for current and future construction projects; the effect of retroactive pricing of transactions in the SPP markets or adjustments in market pricing mechanisms by the SPP; 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, safety laws or other regulations that may impact the cost of operations or restrict or change the way the Company’s facilities are operated; 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 cyberattacks and other catastrophic events; creditworthiness of suppliers, customers and other contractual parties; social attitudes regarding the utility, natural gas and power industries; identification of suitable investment opportunities to enhance shareholder returns and achieve long-term financial objectives through business acquisitions and divestitures; increased pension and healthcare costs; the impact of extraordinary external events, such as the current pandemic health event resulting from COVID-19, and their collateral consequences, including extended disruption of economic activity in the Company’s markets; costs and other effects of legal and administrative proceedings, settlements, investigations, claims and matters; difficulty in making accurate assumptions and projections regarding future revenues and costs associated with the Company's equity investment in Enable that the Company does not control; Enable’s pending merger with Energy Transfer and the expected timing of the consummation of the merger; and other risk factors listed in the reports filed by the Company with the Securities and Exchange Commission including those listed in Risk Factors in the Company's Form 10-K for the year ended December 31, 2020.

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




Exhibit 99.01
OGE ENERGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended June 30,Six Months Ended June 30,
(In millions except per share data)2021202020212020
OPERATING REVENUES
Revenues from contracts with customers$564.5 $492.0 $2,185.5 $912.4 
Other revenues12.9 11.5 22.5 22.4 
Operating revenues577.4 503.5 2,208.0 934.8 
FUEL, PURCHASED POWER AND DIRECT TRANSMISSION EXPENSE200.0 137.4 1,546.8 272.4 
OPERATING EXPENSES
Other operation and maintenance119.2 117.5 228.5 237.5 
Depreciation and amortization102.9 97.3 201.6 191.7 
Taxes other than income25.8 25.9 53.0 51.5 
Operating expenses247.9 240.7 483.1 480.7 
OPERATING INCOME129.5 125.4 178.1 181.7 
OTHER INCOME (EXPENSE)
Equity in earnings (losses) of unconsolidated affiliates33.5 26.9 86.7 (719.6)
Allowance for equity funds used during construction1.6 1.3 2.9 2.6 
Other net periodic benefit expense(1.3)(1.0)(2.7)(1.5)
Other income6.3 14.1 9.3 21.5 
Other expense(6.7)(12.4)(8.7)(18.5)
Net other income (expense)33.4 28.9 87.5 (715.5)
INTEREST EXPENSE
Interest on long-term debt37.8 38.8 76.2 75.4 
Allowance for borrowed funds used during construction(0.7)(0.5)(1.5)(1.0)
Interest on short-term debt and other interest charges2.8 2.5 4.6 4.7 
Interest expense39.9 40.8 79.3 79.1 
INCOME (LOSS) BEFORE TAXES123.0 113.5 186.3 (612.9)
INCOME TAX EXPENSE (BENEFIT)10.1 27.6 20.7 (207.0)
NET INCOME (LOSS)$112.9 $85.9 $165.6 $(405.9)
BASIC AVERAGE COMMON SHARES OUTSTANDING200.2 200.2 200.1 200.2 
DILUTED AVERAGE COMMON SHARES OUTSTANDING200.4 200.5 200.2 200.2 
BASIC EARNINGS (LOSS) PER AVERAGE COMMON SHARE$0.56 $0.43 $0.83 $(2.03)
DILUTED EARNINGS (LOSS) PER AVERAGE COMMON SHARE$0.56 $0.43 $0.83 $(2.03)




Exhibit 99.01
OKLAHOMA GAS AND ELECTRIC COMPANY
FINANCIAL AND STATISTICAL DATA
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
(Dollars in millions)2021202020212020
Operating revenues by classification:
Residential$184.2 $208.4 $757.5 $380.7 
Commercial112.2 116.1 421.9 210.2 
Industrial38.7 45.7 186.4 88.3 
Oilfield29.6 39.1 190.9 78.1 
Public authorities and street light38.1 41.6 162.0 77.2 
Sales for resale0.1 0.1 0.1 — 
System sales revenues402.9 451.0 1,718.8 834.5 
Provision for rate refund (1.0) (1.6)
Integrated market128.3 8.5 430.4 15.7 
Transmission36.7 39.8 73.0 74.0 
Other9.5 5.2 (14.2)12.2 
Total operating revenues$577.4 $503.5 $2,208.0 $934.8 
MWh sales by classification (In millions)
Residential2.0 2.2 4.5 4.4 
Commercial1.7 1.5 3.2 3.0 
Industrial1.0 0.9 2.0 2.0 
Oilfield1.0 1.0 2.0 2.1 
Public authorities and street light0.8 0.7 1.4 1.3 
System sales6.5 6.3 13.1 12.8 
Integrated market0.4 0.5 0.7 0.8 
Total sales6.9 6.8 13.8 13.6 
Number of customers874,713 863,234 874,713 863,234 
Weighted-average cost of energy per kilowatt-hour (In cents)
Natural gas2.919 1.907 20.973 1.784 
Coal1.897 1.976 1.835 1.962 
Total fuel2.346 1.760 11.634 1.655 
Total fuel and purchased power2.722 1.919 10.547 1.902 
Degree days
Heating - Actual291 302 2,357 1,951 
Heating - Normal220 204 2,020 2,004 
Cooling - Actual460 559 466 582 
Cooling - Normal569 626 582 639 


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Entity Tax Identification Number 73-0382390  
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