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Share Name | Share Symbol | Market | Type |
---|---|---|---|
OGE Energy Corp | NYSE:OGE | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.39 | 1.11% | 35.57 | 35.745 | 35.15 | 35.28 | 1,675,405 | 23:48:34 |
|
Oklahoma
|
|
73-1481638
|
(State or other jurisdiction of
|
|
(I.R.S. Employer
|
incorporation or organization)
|
|
Identification No.)
|
Large accelerated filer
þ
|
Accelerated filer
o
|
Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
Smaller reporting company
o
|
|
|
Page
|
|
|
Part I - FINANCIAL INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
Part II - OTHER INFORMATION
|
|
|
|
|
|
|
|
|
|
Abbreviation
|
Definition
|
2015 Form 10-K
|
Annual Report on Form 10-K for the year ended December 31, 2015
|
ALJ
|
Administrative Law Judge
|
APSC
|
Arkansas Public Service Commission
|
ArcLight group
|
Bronco Midstream Holdings, LLC and Bronco Midstream Holdings II, LLC, collectively
|
ASU
|
Financial Accounting Standards Board Accounting Standards Update
|
AVEC
|
Arkansas Valley Electric Cooperative Corporation
|
CenterPoint
|
CenterPoint Energy Resources Corp., wholly-owned subsidiary of CenterPoint Energy, Inc.
|
CO
2
|
Carbon dioxide
|
Company
|
OGE Energy, collectively with its subsidiaries
|
CSAPR
|
Cross-State Air Pollution Rule
|
Dry Scrubbers
|
Dry flue gas desulfurization units with spray dryer absorber
|
ECP
|
Environmental Compliance Plan
|
Enable
|
Enable Midstream Partners, LP, a partnership between OGE Energy, the ArcLight group and CenterPoint Energy, Inc. formed to own and operate the midstream businesses of OGE Energy and CenterPoint
|
Enogex Holdings
|
Enogex Holdings LLC, the parent company of Enogex LLC and a majority-owned subsidiary of OGE Holdings, LLC (prior to May 1, 2013)
|
Enogex LLC
|
Enogex LLC, collectively with its subsidiaries (effective July 30, 2013, the name was changed to Enable Oklahoma Intrastate Transmission, LLC)
|
EPA
|
U.S. Environmental Protection Agency
|
FASB
|
Financial Accounting Standards Board
|
Federal Clean Water Act
|
Federal Water Pollution Control Act of 1972, as amended
|
FERC
|
Federal Energy Regulatory Commission
|
FIP
|
Federal implementation plan
|
GAAP
|
Accounting principles generally accepted in the United States
|
IRP
|
Integrated Resource Plan
|
kV
|
Kilovolt
|
MATS
|
Mercury and Air Toxics Standards
|
Mustang Modernization Plan
|
OG&E's plan to replace the soon-to-be retired Mustang steam turbines in late 2017 with 400 MWs of new, efficient combustion turbines at the Mustang site in 2018 and 2019
|
MW
|
Megawatt
|
NAAQS
|
National Ambient Air Quality Standards
|
NGLs
|
Natural gas liquids
|
NO
X
|
Nitrogen oxide
|
OCC
|
Oklahoma Corporation Commission
|
ODEQ
|
Oklahoma Department of Environmental Quality
|
OG&E
|
Oklahoma Gas and Electric Company, wholly-owned subsidiary of OGE Energy
|
OGE Holdings
|
OGE Enogex Holdings, LLC, wholly-owned subsidiary of OGE Energy, parent company of Enogex Holdings (prior to May 1, 2013) and 26.3 percent owner of Enable Midstream Partners
|
Pension Plan
|
Qualified defined benefit retirement plan
|
Ppb
|
Parts per billion
|
PUD
|
Public Utility Division of the Oklahoma Corporation Commission
|
Restoration of Retirement Income Plan
|
Supplemental retirement plan to the Pension Plan
|
SESH
|
Southeast Supply Header, LLC
|
SIP
|
State implementation plan
|
SO
2
|
Sulfur dioxide
|
SPP
|
Southwest Power Pool
|
System sales
|
Sales to OG&E's customers
|
TBtu/d
|
Trillion British thermal units per day
|
•
|
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
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 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;
|
•
|
unusual weather;
|
•
|
availability and prices of raw materials for current and future construction projects;
|
•
|
the effect of retroactive repricing 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 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 that the Company does not control;
and
|
•
|
other risk factors listed in the reports filed by
the Company
with the Securities and Exchange Commission including those listed in
"Item 1A.
Risk Factors
" and
in
Exhibit 99.01 to
the Company's
2015
Form 10-K.
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||
(In millions except per share data)
|
2016
|
2015
|
2016
|
2015
|
||||||||
OPERATING REVENUES
|
$
|
743.9
|
|
$
|
719.8
|
|
$
|
1,728.4
|
|
$
|
1,749.8
|
|
COST OF SALES
|
269.8
|
|
259.8
|
|
645.4
|
|
682.3
|
|
||||
OPERATING EXPENSES
|
|
|
|
|
||||||||
Other operation and maintenance
|
113.1
|
|
109.4
|
|
354.6
|
|
334.3
|
|
||||
Depreciation and amortization
|
82.2
|
|
77.9
|
|
240.8
|
|
230.0
|
|
||||
Taxes other than income
|
21.5
|
|
21.9
|
|
66.5
|
|
68.8
|
|
||||
Total operating expenses
|
216.8
|
|
209.2
|
|
661.9
|
|
633.1
|
|
||||
OPERATING INCOME
|
257.3
|
|
250.8
|
|
421.1
|
|
434.4
|
|
||||
OTHER INCOME (EXPENSE)
|
|
|
|
|
||||||||
Equity in earnings of unconsolidated affiliates
|
34.5
|
|
(71.9
|
)
|
79.5
|
|
(12.0
|
)
|
||||
Allowance for equity funds used during construction
|
3.9
|
|
2.2
|
|
9.2
|
|
5.4
|
|
||||
Other income
|
5.7
|
|
8.9
|
|
18.9
|
|
19.4
|
|
||||
Other expense
|
(3.3
|
)
|
(5.3
|
)
|
(10.8
|
)
|
(8.5
|
)
|
||||
Net other income (expense)
|
40.8
|
|
(66.1
|
)
|
96.8
|
|
4.3
|
|
||||
INTEREST EXPENSE
|
|
|
|
|
||||||||
Interest on long-term debt
|
35.8
|
|
37.0
|
|
107.3
|
|
110.9
|
|
||||
Allowance for borrowed funds used during construction
|
(2.0
|
)
|
(1.1
|
)
|
(4.7
|
)
|
(2.7
|
)
|
||||
Interest on short-term debt and other interest charges
|
1.6
|
|
1.1
|
|
5.1
|
|
4.2
|
|
||||
Interest expense
|
35.4
|
|
37.0
|
|
107.7
|
|
112.4
|
|
||||
INCOME BEFORE TAXES
|
262.7
|
|
147.7
|
|
410.2
|
|
326.3
|
|
||||
INCOME TAX EXPENSE
|
79.1
|
|
36.5
|
|
129.9
|
|
84.4
|
|
||||
NET INCOME
|
$
|
183.6
|
|
$
|
111.2
|
|
$
|
280.3
|
|
$
|
241.9
|
|
BASIC AVERAGE COMMON SHARES OUTSTANDING
|
199.7
|
|
199.7
|
|
199.7
|
|
199.6
|
|
||||
DILUTED AVERAGE COMMON SHARES OUTSTANDING
|
199.9
|
|
199.7
|
|
199.8
|
|
199.6
|
|
||||
BASIC EARNINGS PER AVERAGE COMMON SHARE
|
$
|
0.92
|
|
$
|
0.55
|
|
$
|
1.40
|
|
$
|
1.21
|
|
DILUTED EARNINGS PER AVERAGE COMMON SHARE
|
$
|
0.92
|
|
$
|
0.55
|
|
$
|
1.40
|
|
$
|
1.21
|
|
DIVIDENDS DECLARED PER COMMON SHARE
|
$
|
0.30250
|
|
$
|
0.27500
|
|
$
|
0.85250
|
|
$
|
0.77500
|
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
||||||||
Net income
|
$
|
183.6
|
|
$
|
111.2
|
|
$
|
280.3
|
|
$
|
241.9
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
||||||||
Pension Plan and Restoration of Retirement Income Plan:
|
|
|
|
|
||||||||
Amortization of deferred net loss, net of tax of $0.4, $0.3, $1.2 and $1.7, respectively
|
0.8
|
|
0.7
|
|
2.3
|
|
1.9
|
|
||||
Settlement cost, net of tax of $0.0, $2.4, $3.2 and $2.4, respectively
|
—
|
|
3.8
|
|
5.0
|
|
3.8
|
|
||||
Postretirement Benefit Plans:
|
|
|
|
|
||||||||
Amortization of deferred net loss, net of tax of $0.0, $0.2, $0.0 and $0.6, respectively
|
—
|
|
0.3
|
|
—
|
|
0.9
|
|
||||
Amortization of prior service cost, net of tax of ($0.2), ($0.3), ($0.7) and ($0.8), respectively
|
(0.4
|
)
|
(0.4
|
)
|
(1.2
|
)
|
(1.3
|
)
|
||||
Other comprehensive income, net of tax
|
0.4
|
|
4.4
|
|
6.1
|
|
5.3
|
|
||||
Comprehensive income
|
$
|
184.0
|
|
$
|
115.6
|
|
$
|
286.4
|
|
$
|
247.2
|
|
|
Nine Months Ended September 30,
|
|||||
(In millions)
|
2016
|
2015
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
||||
Net income
|
$
|
280.3
|
|
$
|
241.9
|
|
Adjustments to reconcile net income to net cash provided from operating activities
|
|
|
||||
Depreciation and amortization
|
240.8
|
|
230.0
|
|
||
Deferred income taxes and investment tax credits
|
134.2
|
|
62.3
|
|
||
Equity in earnings of unconsolidated affiliates
|
(79.5
|
)
|
12.0
|
|
||
Distributions from unconsolidated affiliates
|
79.9
|
|
67.1
|
|
||
Allowance for equity funds used during construction
|
(9.2
|
)
|
(5.4
|
)
|
||
Stock-based compensation
|
3.2
|
|
3.8
|
|
||
Excess tax benefit on stock-based compensation
|
—
|
|
(5.2
|
)
|
||
Regulatory assets
|
(10.5
|
)
|
12.7
|
|
||
Regulatory liabilities
|
(9.8
|
)
|
(13.9
|
)
|
||
Other assets
|
18.0
|
|
12.7
|
|
||
Other liabilities
|
(19.8
|
)
|
0.1
|
|
||
Change in certain current assets and liabilities
|
|
|
||||
Accounts receivable, net
|
(51.2
|
)
|
(33.8
|
)
|
||
Accounts receivable - unconsolidated affiliates
|
(0.7
|
)
|
0.5
|
|
||
Accrued unbilled revenues
|
(17.5
|
)
|
(22.4
|
)
|
||
Fuel, materials and supplies inventories
|
30.9
|
|
(25.5
|
)
|
||
Fuel clause under recoveries
|
(0.5
|
)
|
66.7
|
|
||
Other current assets
|
(13.1
|
)
|
(8.9
|
)
|
||
Accounts payable
|
(90.6
|
)
|
(57.7
|
)
|
||
Fuel clause over recoveries
|
(59.9
|
)
|
34.5
|
|
||
Other current liabilities
|
1.9
|
|
37.6
|
|
||
Net Cash Provided from Operating Activities
|
426.9
|
|
609.1
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
||||
Capital expenditures (less allowance for equity funds used during construction)
|
(466.7
|
)
|
(375.0
|
)
|
||
Return of capital - equity method investments
|
25.9
|
|
36.9
|
|
||
Proceeds from sale of assets
|
0.3
|
|
2.2
|
|
||
Net Cash Used in Investing Activities
|
(440.5
|
)
|
(335.9
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
||||
Dividends paid on common stock
|
(164.7
|
)
|
(149.7
|
)
|
||
Issuance of common stock
|
—
|
|
7.2
|
|
||
Excess tax benefit on stock-based compensation
|
—
|
|
5.2
|
|
||
Payment of long-term debt
|
(110.1
|
)
|
(0.1
|
)
|
||
Increase (decrease) in short-term debt
|
213.2
|
|
(98.0
|
)
|
||
Net Cash Used in Financing Activities
|
(61.6
|
)
|
(235.4
|
)
|
||
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
(75.2
|
)
|
37.8
|
|
||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
75.2
|
|
5.5
|
|
||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
—
|
|
$
|
43.3
|
|
|
September 30,
|
December 31,
|
||||
(In millions)
|
2016
|
2015
|
||||
ASSETS
|
|
|
||||
CURRENT ASSETS
|
|
|
||||
Cash and cash equivalents
|
$
|
—
|
|
$
|
75.2
|
|
Accounts receivable, less reserve of $2.0 and $1.4, respectively
|
224.3
|
|
173.1
|
|
||
Accounts receivable - unconsolidated affiliates
|
2.4
|
|
1.7
|
|
||
Accrued unbilled revenues
|
71.0
|
|
53.5
|
|
||
Income taxes receivable
|
17.7
|
|
17.2
|
|
||
Fuel inventories
|
87.6
|
|
113.8
|
|
||
Materials and supplies, at average cost
|
75.4
|
|
80.1
|
|
||
Fuel clause under recoveries
|
0.5
|
|
—
|
|
||
Other
|
68.2
|
|
55.6
|
|
||
Total current assets
|
547.1
|
|
570.2
|
|
||
OTHER PROPERTY AND INVESTMENTS
|
|
|
|
|
||
Investment in unconsolidated affiliates
|
1,168.0
|
|
1,194.4
|
|
||
Other
|
72.0
|
|
70.7
|
|
||
Total other property and investments
|
1,240.0
|
|
1,265.1
|
|
||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
||||
In service
|
10,599.6
|
|
10,318.3
|
|
||
Construction work in progress
|
365.8
|
|
278.5
|
|
||
Total property, plant and equipment
|
10,965.4
|
|
10,596.8
|
|
||
Less accumulated depreciation
|
3,431.1
|
|
3,274.4
|
|
||
Net property, plant and equipment
|
7,534.3
|
|
7,322.4
|
|
||
DEFERRED CHARGES AND OTHER ASSETS
|
|
|
||||
Regulatory assets
|
404.8
|
|
402.2
|
|
||
Other
|
57.8
|
|
20.7
|
|
||
Total deferred charges and other assets
|
462.6
|
|
422.9
|
|
||
TOTAL ASSETS
|
$
|
9,784.0
|
|
$
|
9,580.6
|
|
|
September 30,
|
December 31,
|
||||
(In millions)
|
2016
|
2015
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
||||
CURRENT LIABILITIES
|
|
|
||||
Short-term debt
|
$
|
213.2
|
|
$
|
—
|
|
Accounts payable
|
129.4
|
|
262.5
|
|
||
Dividends payable
|
60.4
|
|
54.9
|
|
||
Customer deposits
|
77.4
|
|
77.0
|
|
||
Accrued taxes
|
58.7
|
|
45.9
|
|
||
Accrued interest
|
33.0
|
|
42.9
|
|
||
Accrued compensation
|
34.1
|
|
54.4
|
|
||
Long-term debt due within one year
|
124.9
|
|
110.0
|
|
||
Fuel clause over recoveries
|
1.4
|
|
61.3
|
|
||
Other
|
62.8
|
|
43.9
|
|
||
Total current liabilities
|
795.3
|
|
752.8
|
|
||
LONG-TERM DEBT
|
2,505.2
|
|
2,628.8
|
|
||
DEFERRED CREDITS AND OTHER LIABILITIES
|
|
|
||||
Accrued benefit obligations
|
280.2
|
|
299.9
|
|
||
Deferred income taxes
|
2,314.5
|
|
2,178.2
|
|
||
Regulatory liabilities
|
292.0
|
|
273.6
|
|
||
Other
|
151.6
|
|
121.3
|
|
||
Total deferred credits and other liabilities
|
3,038.3
|
|
2,873.0
|
|
||
Total liabilities
|
6,338.8
|
|
6,254.6
|
|
||
COMMITMENTS AND CONTINGENCIES (NOTE 12)
|
|
|
||||
STOCKHOLDERS' EQUITY
|
|
|
||||
Common stockholders' equity
|
1,104.4
|
|
1,101.3
|
|
||
Retained earnings
|
2,369.8
|
|
2,259.8
|
|
||
Accumulated other comprehensive loss, net of tax
|
(29.0
|
)
|
(35.1
|
)
|
||
Total stockholders' equity
|
3,445.2
|
|
3,326.0
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
9,784.0
|
|
$
|
9,580.6
|
|
(In millions)
|
Common Stock
|
Premium on Common Stock
|
Retained Earnings
|
Accumulated Other Comprehensive Income (Loss)
|
Total
|
||||||||||
Balance at December 31, 2015
|
$
|
2.0
|
|
$
|
1,099.3
|
|
$
|
2,259.8
|
|
$
|
(35.1
|
)
|
$
|
3,326.0
|
|
Net income
|
—
|
|
—
|
|
280.3
|
|
—
|
|
280.3
|
|
|||||
Other comprehensive income, net of tax
|
—
|
|
—
|
|
—
|
|
6.1
|
|
6.1
|
|
|||||
Dividends declared on common stock
|
—
|
|
—
|
|
(170.3
|
)
|
—
|
|
(170.3
|
)
|
|||||
Stock-based compensation
|
—
|
|
3.1
|
|
—
|
|
—
|
|
3.1
|
|
|||||
Balance at September 30, 2016
|
$
|
2.0
|
|
$
|
1,102.4
|
|
$
|
2,369.8
|
|
$
|
(29.0
|
)
|
$
|
3,445.2
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2014
|
$
|
2.0
|
|
$
|
1,085.6
|
|
$
|
2,198.2
|
|
$
|
(41.4
|
)
|
$
|
3,244.4
|
|
Net income
|
—
|
|
—
|
|
241.9
|
|
—
|
|
241.9
|
|
|||||
Other comprehensive income, net of tax
|
—
|
|
—
|
|
—
|
|
5.3
|
|
5.3
|
|
|||||
Dividends declared on common stock
|
—
|
|
—
|
|
(154.8
|
)
|
—
|
|
(154.8
|
)
|
|||||
Issuance of common stock
|
—
|
|
7.2
|
|
—
|
|
—
|
|
7.2
|
|
|||||
Stock-based compensation
|
—
|
|
9.4
|
|
—
|
|
—
|
|
9.4
|
|
|||||
Balance at September 30, 2015
|
$
|
2.0
|
|
$
|
1,102.2
|
|
$
|
2,285.3
|
|
$
|
(36.1
|
)
|
$
|
3,353.4
|
|
1.
|
Summary of Significant Accounting Policies
|
|
September 30,
|
December 31,
|
||||
(In millions)
|
2016
|
2015
|
||||
Regulatory Assets
|
|
|
||||
Current
|
|
|
||||
Oklahoma demand program rider under recovery (A)
|
$
|
48.9
|
|
$
|
36.6
|
|
SPP cost tracker rider under recovery (A)
|
2.4
|
|
4.5
|
|
||
Fuel clause under recoveries
|
0.5
|
|
—
|
|
||
Other (A)
|
7.6
|
|
5.4
|
|
||
Total Current Regulatory Assets
|
$
|
59.4
|
|
$
|
46.5
|
|
Non-Current
|
|
|
|
|
||
Benefit obligations regulatory asset
|
$
|
235.0
|
|
$
|
242.2
|
|
Income taxes recoverable from customers, net
|
60.0
|
|
56.7
|
|
||
Smart Grid
|
43.4
|
|
43.6
|
|
||
Deferred storm expenses
|
35.9
|
|
27.6
|
|
||
Unamortized loss on reacquired debt
|
13.7
|
|
14.8
|
|
||
Other
|
16.8
|
|
17.3
|
|
||
Total Non-Current Regulatory Assets
|
$
|
404.8
|
|
$
|
402.2
|
|
Regulatory Liabilities
|
|
|
|
|
||
Current
|
|
|
|
|
||
Fuel clause over recoveries
|
$
|
1.4
|
|
$
|
61.3
|
|
Other (B)
|
3.8
|
|
7.5
|
|
||
Total Current Regulatory Liabilities
|
$
|
5.2
|
|
$
|
68.8
|
|
Non-Current
|
|
|
|
|
||
Accrued removal obligations, net
|
$
|
260.1
|
|
$
|
254.9
|
|
Pension tracker
|
30.9
|
|
17.7
|
|
||
Other (C)
|
1.0
|
|
1.0
|
|
||
Total Non-Current Regulatory Liabilities
|
$
|
292.0
|
|
$
|
273.6
|
|
(A)
|
Included in Other Current Assets on the
Condensed
Consolidated
Balance Sheets.
|
(B)
|
Included in Other Current Liabilities on the
Condensed
Consolidated
Balance Sheets.
|
(C)
|
Prior year amount of
$1.0 million
reclassified from Deferred Other Liabilities to Non-Current Regulatory Liabilities.
|
|
Nine Months Ended September 30,
|
|||||
(In millions)
|
2016
|
2015
|
||||
Balance at January 1
|
$
|
63.3
|
|
$
|
58.6
|
|
Accretion expense
|
2.1
|
|
1.9
|
|
||
Liabilities settled
|
(0.2
|
)
|
(0.4
|
)
|
||
Revisions in estimated cash flows
|
—
|
|
1.6
|
|
||
Balance at September 30
|
$
|
65.2
|
|
$
|
61.7
|
|
|
Pension Plan and Restoration of Retirement Income Plan
|
|
Postretirement Benefit Plans
|
|
||||||||||||
(In millions)
|
Net loss
|
Prior service cost
|
|
Net income
|
Prior service cost
|
Total
|
||||||||||
Balance at December 31, 2015
|
$
|
(39.2
|
)
|
$
|
0.1
|
|
|
$
|
2.5
|
|
$
|
1.5
|
|
$
|
(35.1
|
)
|
Amounts reclassified from accumulated other comprehensive income (loss)
|
2.3
|
|
—
|
|
|
—
|
|
(1.2
|
)
|
1.1
|
|
|||||
Settlement cost
|
5.0
|
|
—
|
|
|
—
|
|
—
|
|
5.0
|
|
|||||
Net current period other comprehensive income (loss)
|
7.3
|
|
—
|
|
|
—
|
|
(1.2
|
)
|
6.1
|
|
|||||
Balance at September 30, 2016
|
$
|
(31.9
|
)
|
$
|
0.1
|
|
|
$
|
2.5
|
|
$
|
0.3
|
|
$
|
(29.0
|
)
|
|
Pension Plan and Restoration of Retirement Income Plan
|
|
Postretirement Benefit Plans
|
|
||||||||||||
(In millions)
|
Net loss
|
Prior service cost
|
|
Net loss
|
Prior service cost
|
Total
|
||||||||||
Balance at December 31, 2014
|
$
|
(36.8
|
)
|
$
|
0.1
|
|
|
$
|
(8.0
|
)
|
$
|
3.3
|
|
$
|
(41.4
|
)
|
Amounts reclassified from accumulated other comprehensive income (loss)
|
1.9
|
|
—
|
|
|
0.9
|
|
(1.3
|
)
|
1.5
|
|
|||||
Settlement cost
|
3.8
|
|
—
|
|
|
—
|
|
—
|
|
3.8
|
|
|||||
Net current period other comprehensive income (loss)
|
5.7
|
|
—
|
|
|
0.9
|
|
(1.3
|
)
|
5.3
|
|
|||||
Balance at September 30, 2015
|
$
|
(31.1
|
)
|
$
|
0.1
|
|
|
$
|
(7.1
|
)
|
$
|
2.0
|
|
$
|
(36.1
|
)
|
(A)
|
These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost (see Note
10
for additional information).
|
2.
|
Accounting Pronouncements
|
3.
|
Investment in Unconsolidated Affiliate and Related Party Transactions
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
September 30,
|
September 30,
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
||||||||
Operating Revenues:
|
|
|
|
|
||||||||
Electricity to power electric compression assets
|
$
|
3.7
|
|
$
|
4.4
|
|
$
|
9.0
|
|
$
|
11.1
|
|
Cost of Sales:
|
|
|
|
|
||||||||
Natural gas transportation services
|
$
|
8.8
|
|
$
|
8.8
|
|
$
|
26.3
|
|
$
|
26.3
|
|
Natural gas purchases/(sales)
|
4.4
|
|
2.5
|
|
11.3
|
|
7.1
|
|
|
September 30,
|
December 31,
|
||||
Balance Sheet
|
2016
|
2015
|
||||
(In millions)
|
|
|||||
Current assets
|
$
|
408
|
|
$
|
381
|
|
Non-current assets
|
10,833
|
|
10,845
|
|
||
Current liabilities
|
338
|
|
615
|
|
||
Non-current liabilities
|
3,174
|
|
3,080
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
September 30,
|
September 30,
|
||||||||||
Income Statement
|
2016
|
2015
|
2016
|
2015
|
||||||||
(In millions)
|
|
|||||||||||
Operating revenues
|
$
|
620
|
|
$
|
646
|
|
$
|
1,658
|
|
$
|
1,852
|
|
Cost of natural gas and natural gas liquids
|
268
|
|
287
|
|
717
|
|
856
|
|
||||
Operating income
|
139
|
|
(975
|
)
|
299
|
|
(778
|
)
|
||||
Net income
|
110
|
|
(985
|
)
|
231
|
|
(817
|
)
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
September 30,
|
September 30,
|
||||||||||
Reconciliation of Equity in Earnings (Loss) of Unconsolidated Affiliates
|
2016
|
2015
|
2016
|
2015
|
||||||||
(In millions)
|
|
|
||||||||||
Enable net income (loss)
|
$
|
110.1
|
|
$
|
(985.1
|
)
|
$
|
230.8
|
|
$
|
(817.3
|
)
|
Distributions senior to limited partners
|
(9.1
|
)
|
—
|
|
(9.1
|
)
|
—
|
|
||||
Differences due to timing of OGE Energy and Enable accounting close and permanent items
|
3.0
|
|
4.2
|
|
(3.6
|
)
|
9.9
|
|
||||
Enable net income (loss) used to calculate OGE Energy's equity in earnings
|
$
|
104.0
|
|
$
|
(980.9
|
)
|
$
|
218.1
|
|
$
|
(807.4
|
)
|
OGE Energy’s percent ownership
|
26.3
|
%
|
26.3
|
%
|
26.3
|
%
|
26.3
|
%
|
||||
OGE Energy’s portion of Enable net income (loss)
|
$
|
27.3
|
|
$
|
(257.2
|
)
|
$
|
57.5
|
|
$
|
(212.0
|
)
|
Impairments recognized by Enable associated with OGE Energy’s basis differences
|
—
|
|
177.7
|
|
0.6
|
|
177.7
|
|
||||
OGE Energy's share of Enable net income (loss)
|
$
|
27.3
|
|
$
|
(79.5
|
)
|
$
|
58.1
|
|
$
|
(34.3
|
)
|
Amortization of basis difference
|
2.9
|
|
3.5
|
|
8.8
|
|
10.6
|
|
||||
Elimination of Enable fair value step up
|
4.3
|
|
4.1
|
|
12.6
|
|
11.7
|
|
||||
Equity in earnings (loss) of unconsolidated affiliates
|
$
|
34.5
|
|
$
|
(71.9
|
)
|
$
|
79.5
|
|
$
|
(12.0
|
)
|
4.
|
Fair Value Measurements
|
|
September 30,
|
December 31,
|
||||||||||
|
2016
|
2015
|
||||||||||
(In millions)
|
Carrying Amount
|
Fair
Value |
Carrying Amount
|
Fair
Value |
||||||||
Long-Term Debt
|
|
|
|
|
||||||||
Senior Notes
|
$
|
2,385.0
|
|
$
|
2,818.2
|
|
$
|
2,493.9
|
|
$
|
2,754.6
|
|
OG&E Industrial Authority Bonds
|
135.4
|
|
135.4
|
|
135.4
|
|
135.4
|
|
||||
Tinker Debt
|
9.9
|
|
10.0
|
|
10.0
|
|
9.2
|
|
||||
OGE Energy Senior Notes
|
99.8
|
|
99.9
|
|
99.5
|
|
99.9
|
|
5.
|
Stock-Based Compensation
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
||||||||
Performance units
|
|
|
|
|
||||||||
Total shareholder return
|
$
|
1.2
|
|
$
|
1.9
|
|
$
|
3.4
|
|
$
|
5.7
|
|
Earnings per share
|
(1.3
|
)
|
(0.8
|
)
|
(0.3
|
)
|
0.3
|
|
||||
Total performance units
|
(0.1
|
)
|
1.1
|
|
3.1
|
|
6.0
|
|
||||
Restricted stock
|
—
|
|
—
|
|
0.1
|
|
0.1
|
|
||||
Total compensation expense
|
(0.1
|
)
|
1.1
|
|
3.2
|
|
6.1
|
|
||||
Less: Amount paid by unconsolidated affiliates
|
—
|
|
(0.2
|
)
|
—
|
|
0.3
|
|
||||
Net compensation expense
|
$
|
(0.1
|
)
|
$
|
1.3
|
|
$
|
3.2
|
|
$
|
5.8
|
|
Income tax benefit
|
$
|
—
|
|
$
|
0.5
|
|
$
|
1.3
|
|
$
|
2.3
|
|
6.
|
Income Taxes
|
7.
|
Common Equity
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||
(In millions except per share data)
|
2016
|
2015
|
2016
|
2015
|
||||||||
Net income
|
$
|
183.6
|
|
$
|
111.2
|
|
$
|
280.3
|
|
$
|
241.9
|
|
Average Common Shares Outstanding
|
|
|
|
|
||||||||
Basic average common shares outstanding
|
199.7
|
|
199.7
|
|
199.7
|
|
199.6
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
||||||||
Contingently issuable shares (performance and restricted stock units)
|
0.2
|
|
—
|
|
0.1
|
|
—
|
|
||||
Diluted average common shares outstanding
|
199.9
|
|
199.7
|
|
199.8
|
|
199.6
|
|
||||
Basic Earnings Per Average Common Share
|
$
|
0.92
|
|
$
|
0.55
|
|
$
|
1.40
|
|
$
|
1.21
|
|
Diluted Earnings Per Average Common Share
|
$
|
0.92
|
|
$
|
0.55
|
|
$
|
1.40
|
|
$
|
1.21
|
|
Anti-dilutive shares excluded from earnings per share calculation
|
—
|
|
—
|
|
—
|
|
—
|
|
8.
|
Long-Term Debt
|
SERIES
|
DATE DUE
|
AMOUNT
|
||||
|
|
|
|
(In millions)
|
||
0.05%
|
-
|
0.84%
|
Garfield Industrial Authority, January 1, 2025
|
$
|
47.0
|
|
0.07%
|
-
|
0.80%
|
Muskogee Industrial Authority, January 1, 2025
|
32.4
|
|
|
0.05%
|
-
|
0.82%
|
Muskogee Industrial Authority, June 1, 2027
|
56.0
|
|
|
Total (redeemable during next 12 months)
|
$
|
135.4
|
|
9.
|
Short-Term Debt and Credit
Facilities
|
|
Aggregate
|
Amount
|
Weighted-Average
|
|
|
|
|||||
Entity
|
Commitment
|
Outstanding (A)
|
Interest Rate
|
|
Maturity
|
|
|||||
(In millions)
|
|
|
|
|
|
||||||
OGE Energy (B)
|
$
|
750.0
|
|
$
|
213.2
|
|
0.74
|
%
|
(D)
|
December 13, 2018
|
(E)
|
OG&E (C)
|
400.0
|
|
1.7
|
|
0.95
|
%
|
(D)
|
December 13, 2018
|
(E)
|
||
Total
|
$
|
1,150.0
|
|
$
|
214.9
|
|
0.74
|
%
|
|
|
|
(A)
|
Includes direct borrowings under the revolving credit agreements, commercial paper borrowings and letters of credit at
September 30, 2016
.
|
(B)
|
This bank facility is available to back up OGE Energy's commercial paper borrowings and to provide revolving credit borrowings. This
bank
facility
can also be used as
a
letter of credit
facility.
|
(C)
|
This bank facility is
available to back up OG&E's commercial paper borrowings and to provide revolving credit borrowings. This bank facility can also be used as a letter of credit facility.
|
(D)
|
Represents the weighted-average interest rate for the outstanding borrowings under the revolving credit agreements, commercial paper borrowings and letters of credit.
|
(E)
|
As of
September 30, 2016
, commitments of
$16.3 million
and
$8.7 million
of the OGE Energy's and OG&E's credit facilities, respectively, were not extended and unless the non-extending lender is replaced in accordance with the terms of the credit facility, such commitments will expire
December 13, 2017
.
|
10.
|
Retirement Plans and Postretirement Benefit Plans
|
|
Pension Plan
|
|
Restoration of Retirement
Income Plan |
||||||||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||||||||
|
September 30,
|
September 30,
|
|
September 30,
|
September 30,
|
||||||||||||||||||||
(In millions)
|
2016 (B)
|
2015 (B)
|
2016 (C)
|
2015 (C)
|
|
2016 (B)
|
2015 (B)
|
2016 (C)
|
2015 (C)
|
||||||||||||||||
Service cost
|
$
|
4.0
|
|
$
|
4.2
|
|
$
|
11.9
|
|
$
|
12.1
|
|
|
$
|
—
|
|
$
|
0.4
|
|
$
|
0.2
|
|
$
|
1.0
|
|
Interest cost
|
6.4
|
|
6.6
|
|
19.1
|
|
19.6
|
|
|
0.1
|
|
0.2
|
|
0.3
|
|
0.5
|
|
||||||||
Expected return on plan assets
|
(10.4
|
)
|
(11.0
|
)
|
(31.1
|
)
|
(34.5
|
)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Amortization of net loss
|
4.1
|
|
3.8
|
|
12.3
|
|
13.5
|
|
|
0.2
|
|
0.2
|
|
0.5
|
|
0.5
|
|
||||||||
Amortization of unrecognized prior service cost (A)
|
(0.1
|
)
|
0.1
|
|
(0.1
|
)
|
0.3
|
|
|
0.1
|
|
—
|
|
0.1
|
|
0.1
|
|
||||||||
Settlement
|
—
|
|
16.2
|
|
—
|
|
16.2
|
|
|
—
|
|
—
|
|
8.7
|
|
—
|
|
||||||||
Total net periodic benefit cost
|
4.0
|
|
19.9
|
|
12.1
|
|
27.2
|
|
|
0.4
|
|
0.8
|
|
9.8
|
|
2.1
|
|
||||||||
Less: Amount paid by unconsolidated affiliates
|
1.3
|
|
1.0
|
|
3.8
|
|
3.1
|
|
|
0.1
|
|
—
|
|
0.3
|
|
0.1
|
|
||||||||
Net periodic benefit cost (net of unconsolidated affiliates)
|
$
|
2.7
|
|
$
|
18.9
|
|
$
|
8.3
|
|
$
|
24.1
|
|
|
$
|
0.3
|
|
$
|
0.8
|
|
$
|
9.5
|
|
$
|
2.0
|
|
(A)
|
Unamortized prior service cost is amortized on a straight-line basis over the average remaining service period to the first eligibility age of participants who are expected to receive a benefit and are active at the date of the plan amendment.
|
(B)
|
In addition to the
$3.0 million
and
$19.7 million
of net periodic benefit cost recognized
during the
three months ended
September 30, 2016
and
2015
,
respectively
,
OG&E recognized the following:
|
•
|
an increase in pension expense during the
three months ended
September 30, 2016
of
$2.4 million
and
a deferral of
$4.7 million
for the
three months ended
September 30, 2015
,
to maintain the allowable amount to be recovered for pension expense in the Oklahoma jurisdiction which are included in the Pension tracker regulatory liability (see Note 1);
and
|
•
|
during the
three months ended
September 30, 2016
there were
no
costs relating to the deferral of pension expense
compared to
$1.4 million
for the
three months ended
September 30, 2015
related to
the Arkansas jurisdictional portion of
the pension settlement charge of
$16.2 million
during the
three months ended
September 30, 2015
.
|
(C)
|
In addition to the
$17.8 million
and
$26.1 million
of net periodic benefit cost recognized
during the
nine months ended
September 30, 2016
and
2015
,
respectively
,
OG&E recognized the following:
|
•
|
an increase in pension expense during the
nine months ended
September 30, 2016
and
2015
of
$6.7 million
and
$0.6 million
, respectively,
to maintain the allowable amount to be recovered for pension expense in the Oklahoma jurisdiction which are included in the Pension tracker regulatory liability (see Note 1);
and
|
•
|
costs relating to the deferral of pension expense
during the
nine months ended
September 30, 2016
and
2015
of
$0.1 million
and
$1.4 million
, respectively, related to
the Arkansas jurisdictional portion of
the pension settlement charge of
$8.7 million
and
$16.2 million
, respectively.
|
|
Postretirement Benefit Plans
|
|||||||||||
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
September 30,
|
September 30,
|
||||||||||
(In millions)
|
2016 (B)
|
2015 (B)
|
2016 (C)
|
2015 (C)
|
||||||||
Service cost
|
$
|
0.2
|
|
$
|
0.4
|
|
$
|
0.6
|
|
$
|
1.2
|
|
Interest cost
|
2.4
|
|
2.6
|
|
7.1
|
|
7.7
|
|
||||
Expected return on plan assets
|
(0.6
|
)
|
(0.6
|
)
|
(1.7
|
)
|
(1.8
|
)
|
||||
Amortization of net loss
|
0.6
|
|
3.5
|
|
1.9
|
|
10.4
|
|
||||
Amortization of unrecognized prior service cost (A)
|
(2.1
|
)
|
(4.1
|
)
|
(6.5
|
)
|
(12.4
|
)
|
||||
Total net periodic benefit cost
|
0.5
|
|
1.8
|
|
1.4
|
|
5.1
|
|
||||
Less: Amount paid by unconsolidated affiliates
|
—
|
|
0.4
|
|
0.1
|
|
1.0
|
|
||||
Net periodic benefit cost (net of unconsolidated affiliates)
|
$
|
0.5
|
|
$
|
1.4
|
|
$
|
1.3
|
|
$
|
4.1
|
|
(A)
|
Unamortized prior service cost is amortized on a straight-line basis over the average remaining service period to the first eligibility age of participants who are expected to receive a benefit and are active at the date of the plan amendment.
|
(B)
|
In addition to the
$0.5 million
and
$1.4 million
of net periodic benefit cost recognized
during the
three months ended
September 30, 2016
and
2015
,
respectively, OG&E recognized an increase in postretirement medical expense during
the
three months ended
September 30, 2016
and
2015
of
$1.9 million
and
$1.4 million
,
respectively
,
to maintain the allowable amount to be recovered for postretirement medical expense in the Oklahoma jurisdiction which are included in the Pension tracker regulatory liability (see Note 1).
|
(C)
|
In addition to the
$1.3 million
and
$4.1 million
of net periodic benefit cost recognized
during the
nine months ended
September 30, 2016
and
2015
,
respectively, OG&E recognized an increase in postretirement medical expense during
the
nine months ended
September 30, 2016
and
2015
of
$5.9 million
and
$4.3 million
,
respectively
,
to maintain the allowable amount to be recovered for postretirement medical expense in the Oklahoma jurisdiction which are included in the Pension tracker regulatory liability (see Note 1).
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
September 30,
|
September 30,
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
||||||||
Capitalized portion of net periodic pension benefit cost
|
$
|
1.0
|
|
$
|
2.6
|
|
$
|
3.0
|
|
$
|
4.6
|
|
Capitalized portion of net periodic postretirement benefit cost
|
0.2
|
|
0.5
|
|
0.6
|
|
1.4
|
|
11.
|
Report of Business Segments
|
Three Months Ended September 30, 2016
|
Electric Utility
|
Natural Gas Midstream Operations
|
Other Operations
|
Eliminations
|
Total
|
||||||||||
(In millions)
|
|
|
|
|
|
||||||||||
Operating revenues
|
$
|
743.9
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
743.9
|
|
Cost of sales
|
269.8
|
|
—
|
|
—
|
|
—
|
|
269.8
|
|
|||||
Other operation and maintenance
|
115.2
|
|
(0.1
|
)
|
(2.0
|
)
|
—
|
|
113.1
|
|
|||||
Depreciation and amortization
|
80.8
|
|
—
|
|
1.4
|
|
—
|
|
82.2
|
|
|||||
Taxes other than income
|
20.9
|
|
—
|
|
0.6
|
|
—
|
|
21.5
|
|
|||||
Operating income
|
257.2
|
|
0.1
|
|
—
|
|
—
|
|
257.3
|
|
|||||
Equity in earnings of unconsolidated affiliates
|
—
|
|
34.5
|
|
—
|
|
—
|
|
34.5
|
|
|||||
Other income
|
6.0
|
|
—
|
|
0.3
|
|
—
|
|
6.3
|
|
|||||
Interest expense
|
34.3
|
|
—
|
|
1.1
|
|
—
|
|
35.4
|
|
|||||
Income tax expense (benefit)
|
69.0
|
|
12.1
|
|
(2.0
|
)
|
—
|
|
79.1
|
|
|||||
Net income
|
$
|
159.9
|
|
$
|
22.5
|
|
$
|
1.2
|
|
$
|
—
|
|
$
|
183.6
|
|
Investment in unconsolidated affiliates
|
$
|
—
|
|
$
|
1,168.0
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,168.0
|
|
Total assets
|
$
|
8,511.5
|
|
$
|
1,503.1
|
|
$
|
93.3
|
|
$
|
(323.9
|
)
|
$
|
9,784.0
|
|
Three Months Ended September 30, 2015
|
Electric Utility
|
Natural Gas Midstream Operations
|
Other Operations
|
Eliminations
|
Total
|
||||||||||
(In millions)
|
|
|
|
|
|
||||||||||
Operating revenues
|
$
|
719.8
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
719.8
|
|
Cost of sales
|
259.8
|
|
—
|
|
—
|
|
—
|
|
259.8
|
|
|||||
Other operation and maintenance
|
107.4
|
|
4.9
|
|
(2.9
|
)
|
—
|
|
109.4
|
|
|||||
Depreciation and amortization
|
75.9
|
|
—
|
|
2.0
|
|
—
|
|
77.9
|
|
|||||
Taxes other than income
|
21.0
|
|
—
|
|
0.9
|
|
—
|
|
21.9
|
|
|||||
Operating income
|
255.7
|
|
(4.9
|
)
|
—
|
|
—
|
|
250.8
|
|
|||||
Equity in earnings of unconsolidated affiliates (A)
|
—
|
|
(71.9
|
)
|
—
|
|
—
|
|
(71.9
|
)
|
|||||
Other income
|
6.6
|
|
—
|
|
(0.7
|
)
|
(0.1
|
)
|
5.8
|
|
|||||
Interest expense
|
36.4
|
|
—
|
|
0.7
|
|
(0.1
|
)
|
37.0
|
|
|||||
Income tax expense (benefit)
|
63.0
|
|
(26.8
|
)
|
0.3
|
|
—
|
|
36.5
|
|
|||||
Net income
|
$
|
162.9
|
|
$
|
(50.0
|
)
|
$
|
(1.7
|
)
|
$
|
—
|
|
$
|
111.2
|
|
Investment in unconsolidated affiliates
|
$
|
—
|
|
$
|
1,202.2
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,202.2
|
|
Total assets
|
$
|
8,554.1
|
|
$
|
1,541.5
|
|
$
|
133.5
|
|
$
|
(628.4
|
)
|
$
|
9,600.7
|
|
(A)
|
The Company recorded a
$108.4 million
pre-tax charge during the three months ended September 30, 2015 for its share of Enable's goodwill impairment, as adjusted for the basis differences.
|
Nine Months Ended September 30, 2016
|
Electric Utility
|
Natural Gas Midstream Operations
|
Other Operations
|
Eliminations
|
Total
|
||||||||||
(In millions)
|
|
|
|
|
|
||||||||||
Operating revenues
|
$
|
1,728.4
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,728.4
|
|
Cost of sales
|
645.4
|
|
—
|
|
—
|
|
—
|
|
645.4
|
|
|||||
Other operation and maintenance
|
356.3
|
|
7.9
|
|
(9.6
|
)
|
—
|
|
354.6
|
|
|||||
Depreciation and amortization
|
235.9
|
|
—
|
|
4.9
|
|
—
|
|
240.8
|
|
|||||
Taxes other than income
|
63.6
|
|
—
|
|
2.9
|
|
—
|
|
66.5
|
|
|||||
Operating income
|
427.2
|
|
(7.9
|
)
|
1.8
|
|
—
|
|
421.1
|
|
|||||
Equity in earnings of unconsolidated affiliates
|
—
|
|
79.5
|
|
—
|
|
—
|
|
79.5
|
|
|||||
Other income
|
18.3
|
|
—
|
|
(0.8
|
)
|
(0.2
|
)
|
17.3
|
|
|||||
Interest expense
|
104.8
|
|
—
|
|
3.1
|
|
(0.2
|
)
|
107.7
|
|
|||||
Income tax expense (benefit)
|
102.4
|
|
31.5
|
|
(4.0
|
)
|
—
|
|
129.9
|
|
|||||
Net income
|
$
|
238.3
|
|
$
|
40.1
|
|
$
|
1.9
|
|
$
|
—
|
|
$
|
280.3
|
|
Investment in unconsolidated affiliates
|
$
|
—
|
|
$
|
1,168.0
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,168.0
|
|
Total assets
|
$
|
8,511.5
|
|
$
|
1,503.1
|
|
$
|
93.3
|
|
$
|
(323.9
|
)
|
$
|
9,784.0
|
|
Nine Months Ended September 30, 2015
|
Electric Utility
|
Natural Gas Midstream Operations
|
Other Operations
|
Eliminations
|
Total
|
||||||||||
(In millions)
|
|
|
|
|
|
||||||||||
Operating revenues
|
$
|
1,749.8
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,749.8
|
|
Cost of sales
|
682.3
|
|
—
|
|
—
|
|
—
|
|
682.3
|
|
|||||
Other operation and maintenance
|
337.3
|
|
5.9
|
|
(8.9
|
)
|
—
|
|
334.3
|
|
|||||
Depreciation and amortization
|
224.0
|
|
—
|
|
6.0
|
|
—
|
|
230.0
|
|
|||||
Taxes other than income
|
65.7
|
|
—
|
|
3.1
|
|
—
|
|
68.8
|
|
|||||
Operating income
|
440.5
|
|
(5.9
|
)
|
(0.2
|
)
|
—
|
|
434.4
|
|
|||||
Equity in earnings of unconsolidated affiliates (A)
|
—
|
|
(12.0
|
)
|
—
|
|
—
|
|
(12.0
|
)
|
|||||
Other income
|
13.9
|
|
—
|
|
2.6
|
|
(0.2
|
)
|
16.3
|
|
|||||
Interest expense
|
110.5
|
|
—
|
|
2.1
|
|
(0.2
|
)
|
112.4
|
|
|||||
Income tax expense (benefit)
|
94.9
|
|
(8.7
|
)
|
(1.8
|
)
|
—
|
|
84.4
|
|
|||||
Net income
|
$
|
249.0
|
|
$
|
(9.2
|
)
|
$
|
2.1
|
|
$
|
—
|
|
$
|
241.9
|
|
Investment in unconsolidated affiliates
|
$
|
—
|
|
$
|
1,202.2
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,202.2
|
|
Total assets
|
$
|
8,554.1
|
|
$
|
1,541.5
|
|
$
|
133.5
|
|
$
|
(628.4
|
)
|
$
|
9,600.7
|
|
(A)
|
The Company recorded a
$108.4 million
pre-tax charge during the three months ended September 30, 2015 for its share of Enable's goodwill impairment, as adjusted for the basis differences.
|
12.
|
Commitments and Contingencies
|
13.
|
Rate Matters and Regulation
|
•
|
an increase
in net income attributable to OGE Holdings of
$72.5 million
, or
$0.37
per diluted share of the Company's common stock, primarily due to
an increase in earnings of unconsolidated affiliates due to a goodwill impairment in 2015
partially offset by an increase in income taxes resulting from higher taxable income; and
|
•
|
an increase
in net income at the Company of
$2.9 million
, or
$0.02
per diluted share of the Company's common stock, primarily due to a decrease in income tax expense partially offset by an increase in losses associated with the deferred compensation plan.
|
•
|
an increase
in net income attributable to OGE Holdings of
$49.3 million
, or
$0.25
per diluted share of the Company's common stock, primarily due to
an increase in earnings of unconsolidated affiliates due to a goodwill impairment in 2015
, partially offset by an increase in operation and maintenance expense, due to the settlement of the Supplemental Executive Retirement Plan and the Restoration of Retirement Income Plan, as described
|
•
|
a decrease
in net income at OG&E of
$10.7 million
, or
$0.06
per diluted share of the Company's common stock,
primarily due to an increase in other operation and maintenance expense, higher depreciation and amortization expense due to additional assets being placed into service and an increase in income tax expense. These decreases were partially offset by an increase in gross margin, lower interest expense, higher other income and lower taxes other than income.
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
September 30,
|
September 30,
|
||||||||||
(In millions except per share data)
|
2016
|
2015
|
2016
|
2015
|
||||||||
Net income
|
$
|
183.6
|
|
$
|
111.2
|
|
$
|
280.3
|
|
$
|
241.9
|
|
Basic average common shares outstanding
|
199.7
|
|
199.7
|
|
199.7
|
|
199.6
|
|
||||
Diluted average common shares outstanding
|
199.9
|
|
199.7
|
|
199.8
|
|
199.6
|
|
||||
Basic earnings per average common share
|
$
|
0.92
|
|
$
|
0.55
|
|
$
|
1.40
|
|
$
|
1.21
|
|
Diluted earnings per average common share
|
$
|
0.92
|
|
$
|
0.55
|
|
$
|
1.40
|
|
$
|
1.21
|
|
Dividends declared per common share
|
$
|
0.30250
|
|
$
|
0.27500
|
|
$
|
0.85250
|
|
$
|
0.77500
|
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
September 30,
|
September 30,
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
||||||||
Net income (loss) attributable to OGE Energy
|
|
|
|
|
||||||||
OG&E (Electric Utility)
|
$
|
159.9
|
|
$
|
162.9
|
|
$
|
238.3
|
|
$
|
249.0
|
|
OGE Holdings (Natural Gas Midstream Operations)
|
22.5
|
|
(50.0
|
)
|
40.1
|
|
(9.2
|
)
|
||||
Other Operations (A)
|
1.2
|
|
(1.7
|
)
|
1.9
|
|
2.1
|
|
||||
Consolidated net income
|
$
|
183.6
|
|
$
|
111.2
|
|
$
|
280.3
|
|
$
|
241.9
|
|
(A)
|
Other Operations primarily includes the operations of the holding company and consolidating eliminations.
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
September 30,
|
September 30,
|
||||||||||
(Dollars in millions)
|
2016
|
2015
|
2016
|
2015
|
||||||||
Operating revenues
|
$
|
743.9
|
|
$
|
719.8
|
|
$
|
1,728.4
|
|
$
|
1,749.8
|
|
Cost of sales
|
269.8
|
|
259.8
|
|
645.4
|
|
682.3
|
|
||||
Other operation and maintenance
|
115.2
|
|
107.4
|
|
356.3
|
|
337.3
|
|
||||
Depreciation and amortization
|
80.8
|
|
75.9
|
|
235.9
|
|
224.0
|
|
||||
Taxes other than income
|
20.9
|
|
21.0
|
|
63.6
|
|
65.7
|
|
||||
Operating income
|
257.2
|
|
255.7
|
|
427.2
|
|
440.5
|
|
||||
Allowance for equity funds used during construction
|
3.9
|
|
2.2
|
|
9.2
|
|
5.4
|
|
||||
Other income
|
2.9
|
|
4.8
|
|
11.3
|
|
9.8
|
|
||||
Other expense
|
0.8
|
|
0.4
|
|
2.2
|
|
1.3
|
|
||||
Interest expense
|
34.3
|
|
36.4
|
|
104.8
|
|
110.5
|
|
||||
Income tax expense
|
69.0
|
|
63.0
|
|
102.4
|
|
94.9
|
|
||||
Net income
|
$
|
159.9
|
|
$
|
162.9
|
|
$
|
238.3
|
|
$
|
249.0
|
|
Operating revenues by classification
|
|
|
|
|
||||||||
Residential
|
$
|
351.9
|
|
$
|
318.1
|
|
$
|
750.0
|
|
$
|
726.7
|
|
Commercial
|
188.4
|
|
176.5
|
|
434.2
|
|
423.0
|
|
||||
Industrial
|
60.4
|
|
59.2
|
|
147.4
|
|
150.2
|
|
||||
Oilfield
|
47.3
|
|
49.1
|
|
118.4
|
|
128.2
|
|
||||
Public authorities and street light
|
66.8
|
|
63.4
|
|
154.4
|
|
154.1
|
|
||||
Sales for resale
|
—
|
|
0.9
|
|
0.2
|
|
21.7
|
|
||||
System sales revenues
|
714.8
|
|
667.2
|
|
1,604.6
|
|
1,603.9
|
|
||||
Provision for rate refund
|
(21.0
|
)
|
—
|
|
(21.0
|
)
|
—
|
|
||||
Integrated market
|
13.2
|
|
13.5
|
|
33.0
|
|
34.8
|
|
||||
Other
|
36.9
|
|
39.1
|
|
111.8
|
|
111.1
|
|
||||
Total operating revenues
|
$
|
743.9
|
|
$
|
719.8
|
|
$
|
1,728.4
|
|
$
|
1,749.8
|
|
Reconciliation of gross margin to revenue:
|
|
|
|
|
||||||||
Operating revenues
|
$
|
743.9
|
|
$
|
719.8
|
|
$
|
1,728.4
|
|
$
|
1,749.8
|
|
Cost of sales
|
269.8
|
|
259.8
|
|
645.4
|
|
682.3
|
|
||||
Gross margin
|
$
|
474.1
|
|
$
|
460.0
|
|
$
|
1,083.0
|
|
$
|
1,067.5
|
|
MWH sales by classification
(In millions)
|
|
|
|
|
||||||||
Residential
|
3.2
|
|
3.1
|
|
7.3
|
|
7.4
|
|
||||
Commercial
|
2.1
|
|
2.1
|
|
5.7
|
|
5.7
|
|
||||
Industrial
|
1.0
|
|
1.0
|
|
2.8
|
|
2.8
|
|
||||
Oilfield
|
0.8
|
|
0.8
|
|
2.4
|
|
2.5
|
|
||||
Public authorities and street light
|
0.9
|
|
0.9
|
|
2.4
|
|
2.4
|
|
||||
Sales for resale
|
—
|
|
—
|
|
—
|
|
0.5
|
|
||||
System sales
|
8.0
|
|
7.9
|
|
20.6
|
|
21.3
|
|
||||
Integrated market
|
0.7
|
|
0.4
|
|
1.5
|
|
1.1
|
|
||||
Total sales
|
8.7
|
|
8.3
|
|
22.1
|
|
22.4
|
|
||||
Number of customers
|
832,234
|
|
821,596
|
|
832,234
|
|
821,596
|
|
||||
Weighted-average cost of energy per kilowatt-hour - cents
|
|
|
|
|
||||||||
Natural gas
|
2.688
|
|
2.668
|
|
2.366
|
|
2.666
|
|
||||
Coal
|
2.222
|
|
2.209
|
|
2.251
|
|
2.170
|
|
||||
Total fuel
|
2.337
|
|
2.300
|
|
2.175
|
|
2.245
|
|
||||
Total fuel and purchased power
|
2.984
|
|
2.973
|
|
2.796
|
|
2.925
|
|
||||
Degree days (A)
|
|
|
|
|
||||||||
Heating - Actual
|
3
|
|
—
|
|
1,714
|
|
1,984
|
|
||||
Heating - Normal
|
19
|
|
19
|
|
2,020
|
|
2,020
|
|
||||
Cooling - Actual
|
1,450
|
|
1,372
|
|
2,082
|
|
1,993
|
|
||||
Cooling - Normal
|
1,380
|
|
1,380
|
|
2,018
|
|
2,018
|
|
(A)
|
Degree days are calculated as follows: The high and low degrees of a particular day are added together and then averaged. If the calculated average is above 65 degrees, then the difference between the calculated average and 65 is expressed as cooling
|
(In millions)
|
Change
|
||
Interim rate increase - Oklahoma (A)
|
$
|
23.6
|
|
Reserve for rate refund (A)
|
(21.0
|
)
|
|
Price variance (B)
|
10.8
|
|
|
Non-residential demand and related revenues
|
1.1
|
|
|
New customer growth
|
0.8
|
|
|
Quantity variance (primarily weather)
|
0.7
|
|
|
Other
|
0.1
|
|
|
Expiration of AVEC contract (C)
|
(0.6
|
)
|
|
Wholesale transmission revenue
|
(1.4
|
)
|
|
Change in gross margin
|
$
|
14.1
|
|
(A)
|
As discussed in Note 13, on July 1, 2016, OG&E implemented an annual interim rate increase of
$69.5 million
. Interim rates are subject to refund of any amount recovered in excess of the rates ultimately approved by the OCC in the general rate case.
|
(B)
|
Increased primarily due to the pricing impact of weather related sales.
|
(C)
|
On June 30, 2015, the wholesale power contract with AVEC expired.
|
(In millions)
|
Change
|
||
Salaries and wages (A)
|
$
|
3.5
|
|
Contract professional services (B)
|
3.4
|
|
|
Marketing (related to demand side management)
|
2.2
|
|
|
Maintenance at power plants (C)
|
1.7
|
|
|
Corporate allocations and overheads
|
0.4
|
|
|
Injuries and damages
|
(1.1
|
)
|
|
Capitalized labor (D)
|
(2.3
|
)
|
|
Change in other operation and maintenance expense
|
$
|
7.8
|
|
(A)
|
Increased primarily due to increased overtime and an increase in incentive compensation.
|
(B)
|
Increased primarily due to increased engineering services.
|
(C)
|
Increased primarily due to increased work performed at the power plants.
|
(D)
|
Decreased primarily due to capitalized labor related to storms.
|
(In millions)
|
Change
|
||
Interim rate increase - Oklahoma (A)
|
$
|
23.6
|
|
Reserve rate for refund (A)
|
(21.0
|
)
|
|
Price variance (B)
|
21.2
|
|
|
Wholesale transmission revenue (C)
|
4.7
|
|
|
New customer growth
|
1.9
|
|
|
Non-residential demand and related revenues
|
(0.6
|
)
|
|
Quantity variance (primarily weather)
|
(1.5
|
)
|
|
Other
|
(3.1
|
)
|
|
Expiration of AVEC contract (D)
|
(9.7
|
)
|
|
Change in gross margin
|
$
|
15.5
|
|
(A)
|
As discussed in Note 13, on July 1, 2016, OG&E implemented an annual interim rate increase of
$69.5 million
. Interim rates are subject to refund of any amount recovered in excess of the rates ultimately approved by the OCC in the general rate case.
|
(B)
|
Increased primarily due to the reversal of a reserve for gas transportation charges in addition to the pricing impact of weather related sales.
|
(C)
|
Increased primarily due to a true up for the base plan projects in the SPP formula rate for 2014 and 2015 as well as a true up for Network Integration Transmission Services in the SPP formula rate for 2015.
|
(D)
|
On June 30, 2015, the wholesale power contract with AVEC expired.
|
(In millions)
|
Change
|
||
Salaries and wages (A)
|
$
|
6.2
|
|
Contract professional services (B)
|
4.7
|
|
|
Maintenance at power plants (C)
|
4.6
|
|
|
Corporate allocations and overheads (D)
|
4.5
|
|
|
Vegetation management (E)
|
3.6
|
|
|
Marketing (related to demand side management)
|
2.8
|
|
|
Employee benefits
|
(1.1
|
)
|
|
Injuries and damages
|
(1.1
|
)
|
|
Software expense
|
(1.5
|
)
|
|
Capitalized labor (F)
|
(3.8
|
)
|
|
Change in other operation and maintenance expense
|
$
|
18.9
|
|
(A)
|
Increased primarily due to annual salary increases and an increase in incentive compensation.
|
(B)
|
Increased primarily due to increased engineering services.
|
(C)
|
Increased primarily due to increased work performed at the power plants.
|
(D)
|
Increased primarily due to additional information technology and facility direct support.
|
(E)
|
Increased primarily due to timing of vegetation management.
|
(F)
|
Decreased primarily due to capitalized labor related to storms.
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
||||||||
Operating revenues
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Cost of sales
|
—
|
|
—
|
|
—
|
|
—
|
|
||||
Other operation and maintenance
|
(0.1
|
)
|
4.9
|
|
7.9
|
|
5.9
|
|
||||
Depreciation and amortization
|
—
|
|
—
|
|
—
|
|
—
|
|
||||
Taxes other than income
|
—
|
|
—
|
|
—
|
|
—
|
|
||||
Operating income (loss)
|
0.1
|
|
(4.9
|
)
|
(7.9
|
)
|
(5.9
|
)
|
||||
Equity in earnings of unconsolidated affiliates
|
34.5
|
|
(71.9
|
)
|
79.5
|
|
(12.0
|
)
|
||||
Income before taxes
|
34.6
|
|
(76.8
|
)
|
71.6
|
|
(17.9
|
)
|
||||
Income tax expense
|
12.1
|
|
(26.8
|
)
|
31.5
|
|
(8.7
|
)
|
||||
Net income (loss) attributable to OGE Holdings
|
$
|
22.5
|
|
$
|
(50.0
|
)
|
$
|
40.1
|
|
$
|
(9.2
|
)
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
September 30,
|
September 30,
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
||||||||
Operating revenues
|
$
|
620
|
|
$
|
646
|
|
$
|
1,658
|
|
$
|
1,852
|
|
Cost of natural gas and natural gas liquids
|
268
|
|
287
|
|
717
|
|
856
|
|
||||
Operating income
|
139
|
|
(975
|
)
|
299
|
|
(778
|
)
|
||||
Net income
|
110
|
|
(985
|
)
|
231
|
|
(817
|
)
|
|
Three Months Ended
|
Nine Months Ended
|
||||||
|
September 30,
|
September 30,
|
||||||
|
2016
|
2015
|
2016
|
2015
|
||||
Gathered volumes - TBtu/d
|
3.16
|
|
3.17
|
|
3.11
|
|
3.17
|
|
Transportation volumes - TBtu/d
|
4.79
|
|
4.62
|
|
4.92
|
|
5.10
|
|
Natural gas processed volumes - TBtu/d
|
1.78
|
|
1.87
|
|
1.78
|
|
1.79
|
|
NGLs sold - million gallons/d (A)(B)
|
73.45
|
|
81.63
|
|
77.93
|
|
74.45
|
|
(A)
|
Excludes condensate.
|
(B)
|
NGLs sold includes volumes of NGLs withdrawn from inventory or purchased for system balancing purposes.
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
|
September 30,
|
September 30,
|
||||||||||
Reconciliation of Equity in Earnings (Loss) of Unconsolidated Affiliates
|
2016
|
2015
|
2016
|
2015
|
||||||||
(In millions)
|
|
|
||||||||||
Enable net income (loss)
|
$
|
110.1
|
|
$
|
(985.1
|
)
|
$
|
230.8
|
|
$
|
(817.3
|
)
|
Distributions senior to limited partners
|
(9.1
|
)
|
—
|
|
(9.1
|
)
|
—
|
|
||||
Differences due to timing of OGE Energy and Enable accounting close and permanent items
|
3.0
|
|
4.2
|
|
(3.6
|
)
|
9.9
|
|
||||
Differences due to timing of OGE Energy and Enable accounting close and permanent items
|
$
|
104.0
|
|
$
|
(980.9
|
)
|
$
|
218.1
|
|
$
|
(807.4
|
)
|
OGE Energy’s percent ownership
|
26.3
|
%
|
26.3
|
%
|
26.3
|
%
|
26.3
|
%
|
||||
OGE Energy’s portion of Enable net income (loss)
|
$
|
27.3
|
|
$
|
(257.2
|
)
|
$
|
57.5
|
|
$
|
(212.0
|
)
|
Impairments recognized by Enable associated with OGE Energy’s basis differences
|
—
|
|
177.7
|
|
0.6
|
|
177.7
|
|
||||
OGE Energy's share of Enable net income (loss)
|
27.3
|
|
(79.5
|
)
|
58.1
|
|
(34.3
|
)
|
||||
Amortization of basis difference
|
2.9
|
|
3.5
|
|
8.8
|
|
10.6
|
|
||||
Elimination of Enable fair value step up
|
4.3
|
|
4.1
|
|
12.6
|
|
11.7
|
|
||||
Equity in earnings (loss) of unconsolidated affiliates
|
$
|
34.5
|
|
$
|
(71.9
|
)
|
$
|
79.5
|
|
$
|
(12.0
|
)
|
|
Nine Months Ended
|
|
|
||||||||
|
September 30,
|
2016 vs. 2015
|
|||||||||
(In millions)
|
2016
|
2015
|
$ Change
|
% Change
|
|||||||
Net cash provided from operating activities
|
$
|
426.9
|
|
$
|
609.1
|
|
$
|
(182.2
|
)
|
(29.9
|
)%
|
Net cash used in investing activities
|
(440.5
|
)
|
(335.9
|
)
|
(104.6
|
)
|
31.1
|
%
|
|||
Net cash used in financing activities
|
(61.6
|
)
|
(235.4
|
)
|
173.8
|
|
(73.8
|
)%
|
(In millions)
|
2016
|
2017
|
2018
|
2019
|
2020
|
||||||||||
OG&E Base Transmission
|
$
|
50
|
|
$
|
35
|
|
$
|
30
|
|
$
|
30
|
|
$
|
30
|
|
OG&E Base Distribution
|
185
|
|
195
|
|
175
|
|
175
|
|
175
|
|
|||||
OG&E Base Generation
|
45
|
|
40
|
|
75
|
|
75
|
|
75
|
|
|||||
OG&E Other
|
40
|
|
35
|
|
25
|
|
25
|
|
25
|
|
|||||
Total Base Transmission, Distribution, Generation and Other
|
320
|
|
305
|
|
305
|
|
305
|
|
305
|
|
|||||
OG&E Known and Committed Projects:
|
|
|
|
|
|
||||||||||
Transmission Projects:
|
|
|
|
|
|
||||||||||
Other Regionally Allocated Projects (A)
|
45
|
|
55
|
|
20
|
|
20
|
|
20
|
|
|||||
Large SPP Integrated Transmission Projects (B) (C)
|
20
|
|
150
|
|
20
|
|
—
|
|
—
|
|
|||||
Total Transmission Projects
|
65
|
|
205
|
|
40
|
|
20
|
|
20
|
|
|||||
Other Projects:
|
|
|
|
|
|
||||||||||
Environmental - low NO
X
burners (D)
|
20
|
|
10
|
|
—
|
|
—
|
|
—
|
|
|||||
Environmental - dry scrubbers (D)
|
125
|
|
145
|
|
85
|
|
25
|
|
—
|
|
|||||
Combustion turbines - Mustang
|
150
|
|
160
|
|
30
|
|
—
|
|
—
|
|
|||||
Environmental - natural gas conversion (D)
|
—
|
|
20
|
|
25
|
|
25
|
|
—
|
|
|||||
Allowance of funds used during construction and ad valorem taxes
|
20
|
|
55
|
|
40
|
|
5
|
|
—
|
|
|||||
Total Other Projects
|
315
|
|
390
|
|
180
|
|
55
|
|
—
|
|
|||||
Total Known and Committed Projects
|
380
|
|
595
|
|
220
|
|
75
|
|
20
|
|
|||||
Total
|
$
|
700
|
|
$
|
900
|
|
$
|
525
|
|
$
|
380
|
|
$
|
325
|
|
(A)
|
Typically 100kV to 299kV projects. Approximately 30 percent of revenue requirement allocated to SPP members other than OG&E.
|
(B)
|
Typically 300kV and above projects. Approximately 85 percent of revenue requirement allocated to SPP members other than OG&E.
|
(C)
|
Project Type
|
Project Description
|
Estimated Cost
(In millions) |
Projected In-Service Date
|
|
Integrated Transmission Project
|
30 miles of transmission line from OG&E's Gracemont substation to an AEP companion transmission line to its Elk City substation. Approximately $5.0 million of the estimated cost has been spent prior to 2016.
|
$45
|
Late 2017
|
|
Integrated Transmission Project
|
126 miles of transmission line from OG&E's Woodward District Extra High Voltage substation to OG&E's Cimarron substation; construction of the Mathewson substation on this transmission line. Approximately $55.0 million of the estimated cost associated with the Mathewson to Cimarron line and substations will go into service in 2016; $35.0 million has been spent prior to 2016.
|
$185
|
Mid 2018
|
(D)
|
Represent capital costs associated with OG&E’s ECP to comply with the EPA’s MATS and Regional Haze Rule. More detailed discussion regarding the Regional Haze Rule and OG&E’s ECP can be found in Note
13
and under “Environmental Laws and Regulations” within “Management's Discussion and Analysis of Financial Condition and Results of Operations” under Part I, Item 2 of this Form 10-Q.
|
•
|
the fees and gross margins it realizes with respect to the volume of natural gas, NGLs and crude oil that it handles;
|
•
|
the prices of, levels of production of, and demand for natural gas, NGLs and crude oil;
|
•
|
the volume of natural gas, NGLs and crude oil it gathers, compresses, treats, dehydrates, processes, fractionates, transports and stores;
|
•
|
the relationship among prices for natural gas, NGLs and crude oil;
|
•
|
cash calls and settlements of hedging positions;
|
•
|
margin requirements on open price risk management assets and liabilities;
|
•
|
the level of competition from other midstream energy companies;
|
•
|
adverse effects of governmental and environmental regulation;
|
•
|
the level of its operation and maintenance expenses and general and administrative costs; and
|
•
|
prevailing economic conditions.
|
•
|
the level and timing of capital expenditures it makes;
|
•
|
the cost of acquisitions;
|
•
|
its debt service requirements and other liabilities;
|
•
|
fluctuations in working capital needs;
|
•
|
its ability to borrow funds and access capital markets;
|
•
|
restrictions contained in its debt agreements;
|
•
|
the amount of cash reserves established by its general partner;
|
•
|
distributions paid on its Series A Preferred Units; and
|
•
|
other business risks affecting its cash levels.
|
•
|
Enable's existing unitholders’ proportionate ownership interest in Enable will decrease;
|
•
|
the amount of distributable cash flow on each unit may decrease;
|
•
|
because a lower percentage of total outstanding units will be subordinated units, the risk that a shortfall in the payment of the minimum quarterly distribution will be borne by Enable's common unitholders will increase;
|
•
|
because the amount payable to holders of incentive distribution rights is based on a percentage of the total distributable cash flow, the distributions to holders of incentive distribution rights will increase even if the per unit distribution on common units remains the same;
|
•
|
the ratio of taxable income to distributions may increase;
|
•
|
the relative voting strength of each previously outstanding unit may be diminished; and
|
•
|
the market price of the common units may decline.
|
Period
|
Total Number of Shares Purchased
|
|
Average Price Paid Per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plan
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan
|
|||
07/01/16 - 07/31/16
|
167
|
|
|
$
|
32.03
|
|
N/A
|
N/A
|
08/01/16 - 08/31/16
|
—
|
|
|
$
|
—
|
|
N/A
|
N/A
|
09/01/16 - 09/30/16
|
767
|
|
|
$
|
32.33
|
|
N/A
|
N/A
|
|
OGE ENERGY CORP.
|
|
(Registrant)
|
|
|
By:
|
/s/ Scott Forbes
|
|
Scott Forbes
|
|
Controller and Chief Accounting Officer
|
|
(On behalf of the Registrant and in his capacity as Chief Accounting Officer)
|
1 Year OGE Energy Chart |
1 Month OGE Energy Chart |
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