OGE Energy Corporation (OGE) expects its fiscal 2009 earnings to exceed the previously announced guidance range of $2.30 – $2.60 per share. This also exceeds the Zacks Consensus Estimate of $2.49 per share for fiscal 2009. The primary drivers for OGE Energy’s higher 2009 earnings expectations are improved results for Enogex, colder than usual weather in December 2009 in the Oklahoma Gas and Electric Company (OG&E) service area, and lower operation and maintenance expenses.
 
However, OGE Energy reaffirmed its annual long-term earnings growth rate of 5% to 7% from 2009 through 2012. The company will release its numbers for fiscal 2009 on February 18, 2010. For fiscal 2010, the company expects its earnings per share to be in the range of $2.70 – $2.95.
 
OGE Energy registered earnings per share (EPS) of $1.40 in the third quarter of fiscal 2009, a dime short of the year-ago EPS of $1.50. Earnings in that quarter were boosted by strong results at OG&E.
 
In the third quarter of fiscal 2009, OG&E registered earnings of $1.26 per share, compared with $1.15 in the year-ago quarter. Enogex recorded earnings of 18 cents per share, compared with 30 cents in the year-ago quarter. The holding company, including results from the OGE Energy Resources marketing business, posted a loss of 4 cents per share, compared to earnings of 5 cents year-over-year.
 
Revenue fell to $845.3 million in the third quarter of fiscal 2009 from $1.3 billion in the year-ago quarter due to a tepid economy and a cooler summer, which affected the demand for electricity. Electric Utility revenues fell to $577.9 million from $682.5 million in the year-ago quarter. Similarly, Natural Gas Pipeline revenues fell to $267.4 million from $571.8 million year-over-year.
 
OGE Energy is a public utility holding company. Its principal subsidiary is Oklahoma Gas and Electric Company (OG&E), a regulated public utility generating, transmitting and distributing electricity to retail and wholesale customers in Oklahoma and western Arkansas. Its other subsidiary is Enogex Inc., which owns and operates natural gas transmission and pipelines, has interests in several gas processing plants, markets electricity, natural gas and natural gas liquids and invests in crude oil and natural gas operations.
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