OGE Energy Corp. on Feb. 22 reported net income of $294.8 million, or $1.48 per share, in the 2017 fourth quarter, climbing from $57.9 million, or 29 cents per share, in the same quarter of 2016.
The result, which includes a $1.18 per share gain resulting from tax reform, beats the S&P Capital IQ consensus normalized EPS estimate of 28 cents.
Excluding the impact of tax reform, the increase was attributed to higher earnings from the Enable Midstream Partners LP, partially offset by lower utility earnings. OGE Energy holds a 25.7% limited partner interest and a 50% general partner interest in Enable Midstream.
The Oklahoma City-based company generated $501.9 million in operating revenues, compared with $530.8 million in the comparable quarter of 2016. Fourth-quarter operating income was down to $79.7 million in 2017 from $82.2 million in the corresponding quarter of 2016.
On a full-year basis, OGE Energy reported net income of $619 million, or $3.10 per share, in 2017, an increase from $338.2 million, or $1.69 per share, a year earlier.
The S&P Capital IQ consensus normalized EPS estimate for 2017 was $1.90.
Oklahoma Gas and Electric Co. contributed $306 million, or $1.53 per share, toward full-year 2017 net income, compared with $284 million, or $1.42 per share, in 2016.
OGE Energy Holdings received cash distributions from Enable Midstream of approximately $141 million and contributed earnings of $324 million, or $1.62 per share in 2017, compared with $54 million, or 27 cents per share, in 2016.
Excluding the impact of tax reform, Enable Midstream's earnings were higher due to increased margins, volumes and pricing primarily in the gathering and processing segment.
Looking ahead, OGE Energy is targeting full-year 2018 EPS in the range of $1.90 to $2.05. OG&E is expected to contribute EPS of $1.43 to $1.53 and Enable Midstream is projected to contribute EPS of between 48 cents to 52 cents.