OGE Energy Corp. reports first quarter results

                OGE Energy Corp. reports first quarter results

Guidance reaffirmed for 2013

PR Newswire

OKLAHOMA CITY, May 2, 2013

OKLAHOMA CITY, May 2, 2013 /PRNewswire/ --OGE Energy Corp. (NYSE: OGE) today
reported earnings of $0.23 per diluted share for the three months ended
March31, 2013 compared to $0.38 per diluted share for the first quarter of

OG&E, a regulated electric utility, contributed earnings of $0.13 per share in
the first quarter, compared with earnings of $0.13 per share in the first
quarter last year. Enogex, a midstream natural gas business, contributed
earnings of $0.12 per share compared with earnings of $0.25 per share in the
year-ago quarter. The holding company posted a loss of $0.02 per share in the
first quarter of 2013 compared to breakeven results for the same period in

"Both businesses continue to be well-positioned for growth," said Pete
Delaney, OGE Energy chairman, president and CEO. "The utility's cost
performance initiatives coupled with a sound local economy continue to deliver
value as expected. Enogex, well positioned in prolific basins, gathered and
processed record volumes within the headwinds of a challenging commodity
environment. We are pleased that we closed yesterday on the midstream
partnership with CenterPoint and can begin to realize the enhanced value
proposition of the combination."

Discussion of First Quarter 2013
OGE Energy's consolidated gross margin on revenues was $348 million in the
first quarter, compared with $355 million a year ago. Net income attributable
to OGE Energy was $23 million in the first quarter, compared to $37 million in
the year-ago quarter.

OG&E's gross margin on revenues was $243 million in the first quarter,
compared with $231 million in the comparable quarter last year. The increase
was primarily due to revenues associated with transmission projects, favorable
weather and new customer growth. Net income at the utility was $13 million,
which included the previously announced one-time reserve associated with
Oklahoma investment tax credits.

Enogex's gross margin on revenues was $105 million in the first quarter,
compared with $124 million in the comparable quarter last year. The decrease
was due to lower gross margins in the processing and transportation businesses
primarily resulting from the previously announced conversion of a major
customer to a fee-based processing arrangement and lower natural gas liquids
prices. The decrease in gross margin was partially offset by a 16% increase
in processing volumes and a 15% increase in gathered volumes. Net income
attributable to OGE Enogex Holdings decreased from $25 million in the first
quarter of 2012 to $12 million in the first quarter of 2013 in part due to
higher depreciation expense associated with system expansion in addition to
lower gross margin on revenues. OGE Energy's portion of EBITDA decreased from
$66 million in the first quarter of 2012 to $49 million in the first quarter
of 2013.

2013 Outlook
OGE Energy's 2013 consolidated earnings guidance is unchanged at $3.35 to
$3.60 per average diluted share. This guidance assumes normal weather for the
remainder of the year, but excludes any impact from the midstream partnership
with CenterPoint Energy. More information regarding the Company's 2013
earnings guidance is contained in the Company's 2012 10-K on file with the
Securities and Exchange Commission.

Conference Call Webcast
OGE Energy will host a conference call for discussion of the results and the
outlook for the rest of 2013 on Thursday, May 2, at 8 a.m. CDT. The conference
will be available through www.oge.com. OGE Energy is the parent company of
Oklahoma Gas and Electric Company, a regulated electric utility serving more
than 801,000 customers in Oklahoma and western Arkansas. In addition, OGE
holds 50 percent of the general partner interest created by the merger of
OGE's Enogex LLC midstream subsidiary and the pipeline and field services
businesses of Houston-based CenterPoint Energy.

Non-GAAP Financial Measures
Enogex has included in this release the non-GAAP financial measure EBITDA.
Enogex defines EBITDA as net income attributable to Enogex Holdings before
interest, income taxes and depreciation and amortization. EBITDA is a
supplemental non-GAAP financial measure used by external users of the
Company's financial statements such as investors, commercial banks and others,
to assess:

  othe financial performance of Enogex's assets without regard to financing
    methods, capital structure or historical cost basis;
  oEnogex's operating performance and return on capital as compared to other
    companies in the midstream energy sector, without regard to financing or
    capital structure; and
  othe viability of acquisitions and capital expenditure projects and the
    overall rates of return on alternative investment opportunities.

Enogex provides a reconciliation of EBITDA to net income attributable to
Enogex Holdings, which Enogex considers to be its most directly comparable
financial measure as calculated and presented in accordance with GAAP. The
non-GAAP financial measure of EBITDA should not be considered as an
alternative to GAAP net income attributable to Enogex Holdings. EBITDA is not
a presentation made in accordance with GAAP and has important limitations as
an analytical tool. EBITDA should not be considered in isolation or as a
substitute for analysis of Enogex's results as reported under GAAP. Because
EBITDA excludes some, but not all, items that affect net income and is defined
differently by different companies in Enogex's industry, Enogex's definition
of EBITDA may not be comparable to a similarly titled measure of other
companies. To compensate for the limitations of EBITDA as an analytical tool,
Enogex believes it is important to review the comparable GAAP measure and
understand the differences between the measures. A reconciliation of EBITDA is
below and is available on OGE Energy's website: www.oge.com.

Reconciliation of EBITDA to net income attributable to Enogex Holdings
                               Three Months Ended
                               March 31,
(In millions)                  2013                      2012
Net income attributable to     $       24.8              $      49.5
Enogex Holdings
Interest expense, net          8.1                       7.6
Income tax expense (A)         0.1                       0.1
Depreciation and amortization  28.3                      24.1
expense (B)
EBITDA                         $       61.3              $      81.3
OGE Energy's portion           $       49.0              $      66.1
(A) As of November 1, 2010, Enogex Holdings' earnings are no longer subject to
tax (other than Texas state margin taxes) and are taxable at the individual
partner level.
(B) Includes amortization of certain customer-based intangible assets
associated with the acquisition from Cordillera Energy Partners III, LLC in
November 2011, which is included in gross margin for financial reporting

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" 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; prices
and availability of electricity, coal, natural gas and natural gas liquids,
each on a stand-alone basis and in relation to each other as well as the
processing contract mix between percent-of-liquids, percent-of-proceeds,
keep-whole and fixed-fee; business conditions in the energy and natural gas
midstream industries; 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; 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; the higher degree of risk associated with the Company's nonregulated
business compared with the Company's regulated utility business; the risk that
the midstream partnership between OGE Energy and CenterPoint Energy, Inc. may
not be able to successfully integrate the operations of Enogex LLC and a
wholly-owned subsidiary of CenterPoint Energy Inc.; and other risk factors
listed in the reports filed by the Company with the Securities and Exchange
Commission including those listed in Risk Factors and Exhibit 99.01 to the
Company's Form 10-K for the year ended December31, 2012.

OGE Energy Corp.
consolidated statements of income
(unaudited)                               Three Months Ended
                                          March 31
                                          2013               2012
                                          (In millions, except per share data)
Electric Utility operating revenues       $   455.5       $   426.7
Natural Gas Midstream Operations          445.9              414.0
operating revenues
Total operating revenues                  901.4              840.7
COST OF GOODS SOLD (exclusive of
depreciation and amortization shown
Electric Utility cost of goods sold       199.4              183.6
Natural Gas Midstream Operations cost of  353.6              301.7
goods sold
Total cost of goods sold                  553.0              485.3
Gross margin on revenues                  348.4              355.4
Other operation and maintenance           148.0              147.6
Depreciation and amortization             91.9               86.6
Impairment of assets                      -                  0.2
Gain on insurance proceeds                -                  (7.5)
Taxes other than income                   33.1               30.2
 Total operating expenses               273.0              257.1
OPERATING INCOME                          75.4               98.3
Interest income                           0.1                -
Allowance for equity funds used during    1.2                1.9
Other income                              14.6               7.7
Other expense                             (6.5)              (1.9)
Net other income                         9.4                7.7
Interest on long-term debt                39.7               39.2
Allowance for borrowed funds used during  (0.7)              (1.1)
Interest on short-term debt and other     2.2                2.0
interest charges
Interest expense                          41.2               40.1
INCOME BEFORE TAXES                       43.6               65.9
INCOME TAX EXPENSE                       15.6               18.4
NET INCOME                               28.0               47.5
Less: Net income attributable to          4.9                10.4
noncontrolling interests
NET INCOME ATTRIBUTABLE TO OGE ENERGY     $    23.1      $    37.1
ATTRIBUTABLE TO OGE ENERGY COMMON         $    0.23      $    0.38
ATTRIBUTABLE TO OGE ENERGY COMMON         $    0.23      $    0.38
DIVIDENDS DECLARED PER COMMON SHARE       $  0.4175        $  0.3925

OGE Energy Corp.
financial and statistical data
(unaudited)                             Three Months Ended
                                        March 31
                                        2013                2012
                                        (In millions)
 Operating revenues by classification
  Residential                       $   183.4         $   169.6
  Commercial                        105.6               99.9
  Industrial                        46.1                44.2
  Oilfield                          36.8                36.6
  Public authorities and street     41.6                39.4
  Sales for resale                  14.5                12.8
  System sales revenues        428.0               402.5
  Off-system sales revenues         2.1                 8.9
  Other                             25.4                15.3
  Total operating revenues     $   455.5         $   426.7
 Sales of electricity - Megawatt-hour
 sales by classification
  Residential                       2.2                 1.9
  Commercial                        1.5                 1.5
  Industrial                        0.9                 1.0
  Oilfield                          0.8                 0.8
  Public authorities and street     0.7                 0.7
  Sales for resale                  0.3                 0.3
  System sales                 6.4                 6.2
  Off-system sales                  0.1                 0.4
  Total sales                  6.5                 6.6
 Number of customers                    801,194             792,065
 Average cost of energy per
 kilowatt-hour - cents
  Natural gas                       3.409               2.937
  Coal                              2.286               2.246
  Total fuel                        2.827               2.500
  Total fuel and purchased power    3.037               2.735
 Degree days
  Heating - Actual                  1,800               1,382
  Heating - Normal                  1,798               1,798
  Cooling - Actual                  4                   61
  Cooling - Normal                  13                  13
 Operating revenues                     $   464.3         $   429.6
 Operating income                       $    24.3        $    58.7
 Net income attributable to OGE Enogex  $    12.3        $    25.0
 Net cash provided from operating       $    28.9        $    54.1
 Capital expenditures                   $   128.2         $   118.5
 Gathered volumes - TBtu/d (a)          1.53                1.33
 Incremental transportation volumes -   0.63                0.52
 TBtu/d (b)
  Total throughput volumes - TBtu/d   2.16                1.85
 Natural gas processed - TBtu/d        1.06                0.91
 Condensate sold - million gallons      12                  10
 Average condensate sales price per     $    1.97        $    2.17
 NGLs (c) sold (purchased) (keep-whole) (74)                37
 - million gallons (d)
 NGLs sold (purchased) (for resale) -   235                 155
 million gallons
 NGLs sold (percent-of-liquids) -       5                   6
 million gallons
 NGLs sold (percent-of-proceeds) -      4                   3
 million gallons
  Total NGLs sold - million gallons   170                 201
 Average NGLs sales price per gallon    $    1.09        $    0.99
 Average NGLs sales price per gallon    $    1.30        $    1.50
 (without ethane)
 Average natural gas sales price per    $    3.33        $    2.80
 million British thermal unit
 (a) Trillion British thermal units
 per day.
 (b) Incremental transportation volumes consist of natural gas moved only on
 the transportation pipeline.
 (c) Natural gas liquids.
 (d) Keep-whole NGLs purchased, rather than sold, in 2013 due to some
 producers electing ethane recovery while Enogex was physically rejecting
 ethane, which resulted in Enogex returning more NGLs to producers than
 extracted from processing.

SOURCE OGE Energy Corp.

Website: http://www.oge.com
Contact: For media: Brian Alford, +1-405-553-3187; For financial: Todd
Tidwell, +1-405-553-3966
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