OGE Energy Corp. (NYSE:OGE) Q4 2014 Earnings Conference Call - Final Transcript
Feb 26, 2015 • 09:00 am ET
Good day, ladies and gentlemen, and welcome to the Fourth Quarter 2014 OGE Energy Earnings Conference Call. My name is Katrina and I'll be your coordinator for today. [Operator Instructions]
I would now like to turn the presentation over to your host for today's call, Mr. Todd Tidwell. Please proceed.
Thank you, and good morning, everyone, and welcome to OGE Energy Corp's fourth quarter 2014 earnings call. I'm Todd Tidwell, Director of Investor Relations and with me today I have Pete Delaney, Chairman and CEO of OGE Energy Corp; Sean Trauschke, President of OGE Energy Corp; and Steve Merrill, CFO of OGE Energy Corp.
In terms of the call today, we will first hear from Pete, followed by a regulatory update from Sean and an explanation from Steve of year-end and fourth quarter results; and finally, as always, we will answer your questions. I would like to remind you that this conference is being web cast and you may follow along at our website oge.com. In addition, the conference call and accompanying slides will be archived following the call on that same website.
Before we begin the presentation, I would like to direct your attention to the Safe Harbor statement regarding forward-looking statements. This is an SEC requirement for financial statements, and simply states that we cannot guarantee forward-looking financial results, but this is our best estimate to-date. I would also like to remind you that there is Regulation G reconciliation for gross margin in the Appendix, along with projected capital expenditures and more detailed assumptions around 2015 guidance.
I will now turn the call over to Pete Delaney for his opening comments. Pete?
Thank you, Todd. Good morning, everyone, and thank you for joining us on today's call. Earlier this morning, we reported 2014 consolidated earnings of $1.98 per share compared with $1.94 in 2013. And for the fourth quarter EPS was $0.29, in line with the fourth quarter of 2013. The Utility reported earnings of $1.46 per share with mild summer weather that we discussed in the last call impacting our earnings by about $0.07.
Looking back, 2014 was the end of a productive five-year period for OGE Energy marked by the IPO of Enable Midstream Partners and OG&E's successful completion of major infrastructure investments, while significantly improving key operational metrics that position the company to be successful as move forward.
Commodity prices have been receiving a lot of attention recently with good reason. As we know, oil and gas sector is subject to inevitable commodity cycles in the recent down-draft has been more precipitous than most and energy companies have responded in kind. Some energy companies here in Oklahoma have announced layoffs that will be expected to increase our unemployment rate, which I will remind you the latest economic statistics still put at below 4% for Oklahoma City and near 4% for the State. So, we have continued to experience strong economic growth here in Oklahoma.
Fortunately, as we've compared to some of the past cycles the State