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FOR RELEASE WEDNESDAY, OCT. 25, 7 A.M. CDT
CONTACT: PAUL RENFROW (405) 553-3287
FINANCIAL CONTACT: ERIC WEEKES (405) 553-3581
OGE ENERGY CORP. REPORTS RECORD THIRD QUARTER EARNINGS
OKLAHOMA CITY - OGE Energy Corp. (NYSE: OGE) today reported record
quarterly earnings of $1.38 a share for the three months ended Sept. 30, 2000,
compared with $1.16 a share for the comparable period in 1999. OGE Energy is the
parent company of Oklahoma Gas and Electric Company (OG&E) and Enogex Inc.
For the 12 months ended Sept. 30, earnings were $1.95 a share, compared
with $1.90 a share for the prior year.
The increase in third-quarter earnings was primarily due to
significantly warmer weather in the OG&E service area in August and September
compared to the same period in 1999. OG&E, a regulated electric utility,
recorded a 13.6 percent increase in electricity revenues in the third quarter
compared to the year-ago period, primarily due to a 9 percent increase in summer
cooling-degree days. Revenues at OG&E were $529 million, compared with $465
million in the third quarter of 1999, due to increased electricity sales and the
recovery of higher fuel costs.
Stronger revenues were partially offset by increased expenses,
including a 35.7 percent jump in fuel costs at OG&E. Those costs were driven
primarily by higher natural gas prices and increased power generation to meet
demand that twice in August reached new record peaks on the OG&E system.
-MORE-
* Note: OGE Energy Corp. Consolidated Statements of Income attached.
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OGE ENERGY CORP. 3RD QUARTER RESULTS - 2 -
Enogex, OGE Energy's natural gas pipeline and energy marketing
subsidiary, posted third-quarter revenues of $602 million, up from $386 million
a year earlier. Increased volumes and higher commodity prices helped Enogex to
increase its third-quarter net income to $4.7 million from $1.4 million a year
ago.
"Summer is the season when our people and our equipment are counted on
most to deliver for our customers and our shareowners," said Steven E. Moore,
OGE Energy chairman, president and CEO. "We are pleased to report they did it
again this year. Their focus on operational excellence and continuous
improvement benefit our company today, and help us to prepare for the
competitive environment that's just ahead."
OTHER EVENT: The OGE Energy Corp. board of directors approved an
amended and restated shareowner rights agreement effective Oct. 10, 2000. The
rights agreement, first established in August 1995, was extended to Dec. 11,
2010 and the purchase price of a right was changed to $130. These changes do not
require any action by the company's shareowners. A summary of the amended and
restated plan will be sent to shareowners with their October dividend checks.
OUTLOOK: OGE Energy Corp., barring unusual circumstances in the fourth
quarter, expects financial results for 2000 to generally match 1999, when the
company posted earnings of $1.94 a share for the year.
Some of the matters discussed on this news release may contain forward-looking
statements that are subject to certain risks, uncertainties and assumptions.
Actual results may vary materially. Factors that could cause actual results to
differ materially include, but are not limited to: general economic conditions,
including their impact on capital expenditures; business conditions in the
energy industry; competitive factors; unusual weather; regulatory decisions and
other risk factors listed in the Company's Form 10-K for the year ended December
31, 1999 and other factors described from time to time in the Company's reports
to the Securities and Exchange Commission.
* Note: OGE Energy Corp. Consolidated Statements of Income attached.
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OGE ENERGY CORP.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED TWELVE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
------------------------------------ --------------------------------------
2000 1999 2000 1999
----------------- ----------------- ------------------ -----------------
(THOUSANDS EXCEPT PER SHARE DATA)
OPERATING REVENUES:
<S> <C> <C> <C> <C>
Electric utility $ 528,993 $ 464,982 $ 1,367,514 $ 1,294,436
Non-utility subsidiaries 478,973 300,459 1,526,864 648,692
----------------- ----------------- ------------------ -----------------
Total operating revenues 1,007,966 765,441 2,894,378 1,943,128
OPERATING EXPENSES:
Fuel 161,712 115,360 382,644 315,696
Purchased power 68,644 69,117 250,005 251,861
Gas and electricity purchased for resale 363,377 233,737 1,154,635 510,509
Other operation and maintenance 148,478 108,170 503,939 336,862
Depreciation and amortization 45,487 44,802 180,056 156,706
Taxes other than income 15,208 15,831 61,578 53,906
----------------- ----------------- ------------------ -----------------
Total operating expenses 802,906 587,017 2,532,857 1,625,540
----------------- ----------------- ------------------ -----------------
OPERATING INCOME 205,060 178,424 361,521 317,588
OTHER INCOME (EXPENSES), NET (216) 1,816 1,766 5,949
----------------- ----------------- ------------------ -----------------
EARNINGS BEFORE INTEREST AND TAXES 204,844 180,240 363,287 323,537
INTEREST INCOME (EXPENSES):
Interest income 1,039 881 3,990 1,809
Interest on long-term debt (25,354) (15,159) (91,788) (60,565)
Interest on trust preferred securities (4,317) - (16,309) -
Allowance for borrowed funds used
during construction 259 121 2,140 900
Other interest charges (3,876) (15,436) (26,916) (26,895)
----------------- ----------------- ------------------ -----------------
Net interest income (expenses) (32,249) (29,593) (128,883) (84,751)
----------------- ----------------- ------------------ -----------------
EARNINGS BEFORE INCOME TAXES 172,595 150,647 234,404 238,786
PROVISIONS FOR INCOME TAXES 65,288 60,443 82,398 89,477
----------------- ----------------- ------------------ -----------------
NET INCOME $ 107,307 $ 90,204 $ 152,006 $ 149,309
================= ================= ================== =================
AVERAGE COMMON SHARES OUTSTANDING 77,863 77,801 77,848 78,665
EARNINGS PER AVERAGE COMMON SHARE $ 1.38 $ 1.16 $ 1.95 $ 1.90
================= ================= ================== =================
</TABLE>
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* Note: OGE Energy Corp. Financial and Statistical Data attached.
<TABLE>
<CAPTION>
OGE ENERGY CORP. THREE MONTHS ENDED TWELVE MONTHS ENDED
FINANCIAL AND STATISTICAL DATA SEPTEMBER 30 SEPTEMBER 30
-------------------------------- ----------------------------------
2000 1999 2000 1999
--------------- --------------- ---------------- ----------------
(DOLLARS IN THOUSANDS)
UTILITY
ELECTRIC REVENUES:
<S> <C> <C> <C> <C>
Residential $ 232,549 $ 199,676 $ 545,340 $ 519,873
Commercial 129,742 109,853 337,613 315,839
Industrial 85,483 74,295 266,559 245,676
Public authorities 46,596 36,692 125,615 118,694
Sales for resale 19,795 15,926 53,579 42,475
Other 9,121 7,503 26,268 25,035
------------ ------------ ------------ ------------
Total system revenues 523,286 443,945 1,354,974 1,267,592
Sales to other utilities 5,707 21,037 12,540 26,844
------------ ------------ ------------ ------------
Total electric revenues $ 528,993 $ 464,982 $ 1,367,514 $ 1,294,436
============ ============ ============ ============
SALES OF ELECTRICITY (MILLIONS OF KWH):
Residential 3,018 2,756 7,715 7,497
Commercial 1,743 1,572 5,563 5,251
Industrial 1,736 1,714 7,002 6,666
Public authorities 734 617 2,494 2,396
Sales for resale 546 667 1,668 1,561
------------ ------------ ------------ ------------
Total system sales 7,777 7,326 24,442 23,371
Sales to other utilities 81 187 276 333
------------ ------------ ------------ ------------
Total electric sales 7,858 7,513 24,718 23,704
============ ============ ============ ============
Number of customers 700,037 698,307
AVERAGE COST OF ENERGY PER KWH (CENTS):
Fuel 2.317 1.807 1.846 1.695
Fuel and purchased power 2.831 2.405 2.538 2.413
DEGREE DAYS:
Heating
Actual 34 32 2,821 2,927
Normal 15 15 3,656 3,636
Cooling
Actual 1,520 1,390 2,136 1,968
Normal 1,279 1,279 1,864 1,864
ENOGEX INC.
Operating revenue $ 601,641 $ 385,746 $ 1,786,471 $ 881,039
Operating income $ 20,302 $ 15,499 $ 99,561 $ 38,659
Net income $ 4,652 $ 1,428 $ 30,435 $ 8,926
Cash flow (excluding working capital) $ 30,408 $ 36,493 $ 138,530 $ 72,475
Total capital expenditures * $ 11,455 $ 718,534 $ 43,850 $ 772,313
------------ ------------ ------------ ------------
Physical System Supply ** (MMcfd) 2,138 2,025 2,050 953
------------ ------------ ------------ ------------
Natural gas processed *** (MMcfd) 808 866 831 411
Natural gas liquids produced and sold **** (000 gallons) 181,762 164,419 704,563 280,381
Average sales price per gallon $ 0.536 $ 0.264 $ 0.456 $ 0.253
------------ ------------ ------------ ------------
Natural gas marketed (BBtu) 109,826 86,592 420,978 250,520
<PAGE>
Average sales price per MMBtu $ 4.271 $ 2.505 $ 3.213 $ 2.232
------------ ------------ ------------ ------------
Power marketed (MWH) 344,415 277,973 1,121,087 2,101,034
Average sales price per MWH $ 56.305 $ 55.640 $ 40.042 $ 32.334
------------ ------------ ------------ ------------
Natural gas produced (MMcfe) 2,111 2,505 9,400 10,084
Average sales price per Mcfe $ 3.221 $ 2.583 $ 2.832 $ 2.360
------------ ------------ ------------ ------------
</TABLE>
* Includes cash expended for assets plus assumed debt
** Reflects all natural gas entering the Enogex, Ozark and Transok
pipeline systems from wellheads and interconnects.
*** Includes 100% of the Calumet plant inlet in which Enogex has a 100%
interest, 100% of the Benedum plant inlet in which NuStar owns
two-thirds and Enogex has an 80% interest in the NuStar Joint Venture
and 100% of the Camrick plant inlet in Enogex has approximately a 50%
interest.
**** Includes 100% of Calumet, Enogex's 50% interest in the Camrick plant
production and 80% interest in the NuStar Joint Venture Production.
