This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

OGE Energy's CEO Discusses Q1 2012 Results - Earnings Call Transcript

Stocks in this article: OGE

This uncertainty around the rate case continues to overhang the markets view of our future earnings, so today we’re providing 2012 earnings guidance without the impact of the Oklahoma rate case. With the expectations of an order earlier in the quarter, we had previously declined to issue 2012 guidance for the utility.

Our consolidated earnings guidance for 2012 is $3.40 and $3.60 per average diluted share. Utility outlook is between $2.60 and $2.70 per share and as you will hear transmission is a big driver. The previously issued Enogex guidance is unchanged. While natural gas price is at a 10-year low and generate a significant investor attention, our plans as outlined on the last call remain the same.

We took prudent action earlier this year to adjust the Enogex 2012 capital expenditure and volume growth projections reflect the expected lower volume growth rate associated with the low price. Our continued growth reflects that the majority of our assets are located in rich natural gas liquids basins. In fact our 2012 capital plant at Enogex was recently increased by $55 million as our management team secured meaningful dedications additive to our already well positioned portfolio. That improves our relative wide earnings growth and additional value for shareholders.

As always, the commodity cycle moves through its paces and the operating environment continually changes around us. But a well positioned portfolio provides the ability to respond by shifting tactics, but not requiring us to change our long-term strategy. Our utility plans remain on track apart from the pending rate case. Our transmission reliability expansion continues with additional $700 million, in Southwest Power Pool projects over the next three years. This does not include the conditional notice to construct [recently] for $250 million to $300 million of additional projects scheduled to be complete in the 2018-2021 timeframe.

Over the past week we’ve completed two projects on time and on plan, the Sunnyside-Hugo line and the Sooner-Rose Hill line. Total costs of these projects was approximately $200 million. We are now beginning to realize meaningful earnings from our transmission investment with projected 2012 transmission gross margin, up $30 million over last year. By the end of 2016 we’re projecting 1.5 billion of transmission rate base with over 800 million under FERC jurisdiction.

Read the rest of this transcript for free on

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs